Problem 10-43 (LO. 7, 8, 9, 10, 11) Amy and Mitchell share equally in the profits, losses, and capital of the accrual basis AM Products LLC. Amy is a managing member of the LLC (treated as a general partner) and is a 1.5. person. At the beginning of the current tax year, Amy's capital account has a balance of $300,000, and the LLC has debts of $200,000 payable to unrelated parties. The debts are recourse to the ulc, but neither of the LLC members has personally guaranteed them. Assume that all uc 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. Ordinary income W-2 wages to employees Depreciation expense Interest income Long-term capital loss Long-term capital gain Charitable contribution (cash) $900,000 200,000 300,000 4,000 6,000 12,000 4,000 Cash distribution to Amy 20,000 Unadjusted basis of partnership depreciable property 1,600,000 Year end debt payable to unrelated parties is $140,000. 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, and that the unadjusted basis of assets immediately after acquisition was $800,000 a. Calculate Amy's basis in her LLC Interest at the beginning and end of the tax year Lc interest at the beginning of the years LLC Interest at end of the years b. What income, gains, losses, and deductions does Amy report on her income tax return? If an amount is zero, enter "0". Ordinary income 90,000 Net long-term capital gain 6.000 Interest income 3,000 Charitable contribution deduction 2,000 Cash distribution 20.000 Homework eBook Calculator C. Based on the information provided, what other calculations is Amy required to make Amy may be eligible to deduct up to of the ordinary income as qualified business income under 5 1994, and will make that calculation on her retum. This deduction require a cash outflow by Amy or the LLC, and it affect her basis of capital account. As someone treated as a general partner, Amy's distributive share of the LLC's ordinary business income subject to self-employment tax and possibly the additional Medicare tax. Her from the LLC may be subject to the additional tax under $ 1411. d. Prepare Amy's capital account rolforward from the beginning to the end of the tax year. How does her ending capital account differ from her ending basis as calculated in part (a)? Capital account balance, beginning year Ordinary income Interest income Net long-term capital gain Charitable contribution Cash distribution to Amy Capital account balance, end of year Amy's call account differs from her basis only by the amount of her shant of LLC