Burgundy, Inc., and Violet are equal partners in the calendar year BV LLC. Burgundy uses a fiscal year ending April 30, and Violet uses a calendar year. Burgundy receives an annual guaranteed payment of $100,000 for use of capital contributed by Burgundy. BV’s taxable income (after deducting the payment to Burgundy, Inc.) is $80,000 for 2022 and $90,000 for 2023.

a. What is the amount of income from the LLC that Burgundy must report for its tax year ending April 30, 2023?

b. What is the amount of income from the LLC that Violet must report for her tax year ending December 31, 2023?

c. Now assume that Burgundy, Inc.’s annual guaranteed payment is increased to $120,000 starting on January 1, 2023, and the LLC’s taxable income for 2022 and 2023 (after deducting Burgundy’s guaranteed payment) is the same (i.e., $80,000 and $90,000, respectively). What is the amount of income from the LLC that Burgundy, Inc., must report for its tax year ending April 30, 2023?