Kim received a one-third profits and capital interest in Bright Line, LLC, in exchange for legal services she provided. In addition to her share of partnership profits or losses, she receives a $34,000 guaranteed payment each year for ongoing services she provides to the LLC. For X4, Bright Line reported the following revenues and expenses: sales$154,000, cost of goods sold$94,000, depreciation expense$50,000, long-term capital gains$19,000, qualified dividends$6,400, and municipal Bond interest$3,400. How much ordinary business income (loss) will Bright Line allocate to Kim on her Schedule K-1 for X4?

Multiple Choice

• ($17,000)

• $7,000

• $10,000

• $17,000

• None of the choices will be reported as ordinary business income (loss) on Schedule K-1.

Kim received a one-third profits and capital interest in Bright Line, LLC, in exchange for legal services she provided. In addition to her share of partnership profits or losses, she receives a $28,000 guaranteed payment each year for ongoing services she provides to the LLC. For X4, Bright Line reported the following revenues and expenses: sales$148,000, cost of goods sold$88,000, depreciation expense$44,000, long-term capital gains$13,000, qualified dividends$5,800, and municipal Bond interest$3,800. How much ordinary business income (loss) will Bright Line allocate to Kim on her Schedule K-1 for X4?

Multiple Choice

• ($15,000)

• $6,000

• $9,000

• $15,000

• None of the choices will be reported as ordinary business income (loss) on Schedule K-1.