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Please answer a & b correctly asap Problem 14-16 (Algorithmic) (LO. 4,5) Amy and Mitchell share equally in the profits, losses, and capital of the
Please answer a & b correctly asap
Problem 14-16 (Algorithmic) (LO. 4,5) Amy and Mitchell share equally in the profits, losses, and capital of the accrual basis AM Products LLC. Amy is the managing member of the LLC (treated as a general partner) and is a U.S. citizen. At the beginning of the current tax year, Amy's capital account has a balance of $888,000, and the LLC has recourse debts of $577,200 payable to unrelated parties. All partnership recourse debt is shared equally between the partners. The following information about AM's operations for the current year is obtained from the entity's records. Ordinary income $1,154,400 W-2 wages to employees 55,000 Depreciation expense Interest income from P & G bond Long-term capital loss Short-term capital gain 158,000 11,544 2,000 6,000 27,000 Charitable contribution Cash distribution to Amy 57,720 Unadjusted basis of partnership depreciable property 1,100,000 Year-end LLC debt payable to unrelated parties is $142,500. Also assume that all AM Products' activities are eligible for the qualified business income deduction and that the unadjusted basis of assets immediately after acquisition was $800,000. If all transactions are reflected in her beginning capital and basis in the same manner: Year-end LLC debt payable to unrelated parties is $142,500. Also assume that all AM Products' activities are eligible for the qualified business income deduction and that the unadjusted basis of assets immediately after acquisition was $800,000. If all transactions are reflected in her beginning capital and basis in the same manner: a. Amy's basis in the LLC interest at the beginning of the year is $ . 1,465,200 b. Amy's basis in the LLC interest at the end of the year is $ . 1,472,952 Problem 14-16 (Algorithmic) (LO. 4,5) Amy and Mitchell share equally in the profits, losses, and capital of the accrual basis AM Products LLC. Amy is the managing member of the LLC (treated as a general partner) and is a U.S. citizen. At the beginning of the current tax year, Amy's capital account has a balance of $888,000, and the LLC has recourse debts of $577,200 payable to unrelated parties. All partnership recourse debt is shared equally between the partners. The following information about AM's operations for the current year is obtained from the entity's records. Ordinary income $1,154,400 W-2 wages to employees 55,000 Depreciation expense Interest income from P & G bond Long-term capital loss Short-term capital gain 158,000 11,544 2,000 6,000 27,000 Charitable contribution Cash distribution to Amy 57,720 Unadjusted basis of partnership depreciable property 1,100,000 Year-end LLC debt payable to unrelated parties is $142,500. Also assume that all AM Products' activities are eligible for the qualified business income deduction and that the unadjusted basis of assets immediately after acquisition was $800,000. If all transactions are reflected in her beginning capital and basis in the same manner: Year-end LLC debt payable to unrelated parties is $142,500. Also assume that all AM Products' activities are eligible for the qualified business income deduction and that the unadjusted basis of assets immediately after acquisition was $800,000. If all transactions are reflected in her beginning capital and basis in the same manner: a. Amy's basis in the LLC interest at the beginning of the year is $ . 1,465,200 b. Amy's basis in the LLC interest at the end of the year is $ . 1,472,952Step by Step Solution
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