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[The following information applies to the questions displayed below.] Georgio owns a 30 percent profits and capital interest in Rain Tree LLC. For the current
[The following information applies to the questions displayed below.] Georgio owns a 30 percent profits and capital interest in Rain Tree LLC. For the current yea revenues, expenses, gains, and losses: Sales revenue Gain on sale of land ($1231) Cost of goods sold Depreciation-MACRS $179 deduction* Employee wages Nondeductible fines and penalties Municipal bond interest Short-term capital gains Guaranteed payment to Sandra $ 81,750 18,900 (37,500) (5,900) (13,800) (17,900) (3,700) 6,400 3,950 (5,000) "Assume the $179 property placed in service limitation does not apply. Problem 20-59 Part a (Algo) a. How much ordinary business income (loss) is allocated to Georgio for the year? Description Total Amount Allocated to Georgio Sales revenue Ordinary Business Income
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