Locator=&inprogress=false eBook Calculator Problem 14-16 (Algorithmic) (LO. 4, 5, 7) Amy and Mitchell share equally in the profits, losses, and capital of the accrual basis AM Products LLC. The LLC does not need to report financial information to any third parties, so capital accounts are determined using tax rules (rather than GAAP). Amy is a managing member of the LLC (treated as a general partner) and is a U.S. person. At the beginning of the current tax year, Amy's capital account has a balance of $848,000, and the LLC has debts of $551,200 payable to unrelated parties. The debts are recourse to the LLC, but neither of the LLC members has personally guaranteed them. Assume that all LLC debt is shared equally between the partners. The following information about AM's operations for the current year is obtained from the LLC's records. $1,272,000 200,000 300,000 12,720 8,480 Operating income W-2 wages Depreciation expense Interest income Long-term capital loss Long-term capital gain Charitable contribution (cash) Cash distribution to Amy Unadjusted basis of partnership depreciable property Immediately after acquisition 25,440 12,770 63,600 1,600,000 Operating income equals revenue less operating expenses (other than expenses listed separately above). Next false eBook Calculator Operating income equals revenue less operating expenses (other than expenses listed separately above), Year-end LLC debt payable to unrelated parties is $385,840. Assume that all transactions are reflected in Amy's beginning capital and basis in the same manner. Also assume that all AM Products' activities are eligible for the qualified business income deduction a. Calculate Amy's basis in her LLC interest at the beginning and end of the tax year. Use her capital account as a starting point. LLC interest at the beginning of the year: LLC interest at the end of the year: $ b. What income, gains, losses, and deductions does Amy report on her income tax return? If an amount is zero, enter "O".