Statement of Members' Equity, Admitting New Member

The statement of members equity for Bonanza, LLC, follows:

Bonanza, LLC
Statement of Members' Equity
For the Years Ended December 31, 20Y3 and 20Y4
	Idaho Properties, LLC, Member Equity		Silver Streams, LLC, Member Equity		Thomas Dunn, Member Equity		Total Members' Equity
Members' equity, January 1, 20Y3	$1,048,000		$682,000				$1,730,000
Net income	171,000		399,000				570,000
Members' equity, December 31, 20Y3	$1,219,000		$1,081,000				$2,300,000
Dunn contribution, January 1, 20Y4	10,560		24,640		$444,800		480,000
Net income	243,000		162,000		405,000		810,000
Member withdrawals	(87,500)		(34,000)		(149,900)		(271,400)
Members' equity, December 31, 20Y4	$1,385,060		$1,233,640		$699,900		$3,318,600

a. What was the income-sharing ratio in 20Y3? Enter the percentage per member and then select the ratio.

Idaho Properties, LLC	%
Silver Streams, LLC	%
Ratio

b. What was the income-sharing ratio in 20Y4? Enter the percentage per member and then select the ratio.

Idaho Properties, LLC	%
Silver Streams, LLC	%
Thomas Dunn	%
Ratio

c. How much cash did Thomas Dunn contribute to Bonanza, LLC, for his interest? $

d. Why do the member equity accounts of Idaho Properties, LLC, and Silver Streams, LLC, have positive entries for Thomas Dunns contribution? The positive entries to Idaho Properties and Silver Streams are the result of Thomas Dunn.

e. What percentage interest of Bonanza did Thomas Dunn acquire? %

f. Why are withdrawals less than net income? Withdrawals will be less when the members wish to capital in the business to business growth.