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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
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 $21,000 guaranteed payment each year for ongoing services she provides to the LLC. For X4, Bright Line reported the following revenues and expenses: sales $141,000, cost of goods sold $81,000, depreciation expense- $42,000, long-term capital gains $6,000, qualified dividends $5,100, and municipal Bond interest-\$3,100. How much ordinary business income (loss) will Bright Line allocate to Kim on her Schedule K-1 for 4 ? Multiple Choice ($14,000) $6,000 $8,000 $14,000
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