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Please answer a, b, and c - thank you! 44. LO.11 Mona and Denise, mother and daughter, operate a local restaurant as an LLC The
Please answer a, b, and c - thank you!
44. LO.11 Mona and Denise, mother and daughter, operate a local restaurant as an LLC The MD LLC earned a profit of $200,000 in the current year. Denise's equal partnership interest was acquired by gift from Mona. Assume that capital is a mate- rial income-producing factor and that Mona manages the day-to-day operations of the restaurant without any help from Denise. Reasonable compensation for Mona's services is $50,000. a. How much of the LLC's income is allocated to Mona? b. What is the maximum amount of the LLC's income that can be allocated to Denise? c. Assuming that Denise is 15 years old, has no other income, and is claimed as a dependent by Mona, how is Denise's income from the LLC taxedStep by Step Solution
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