Enercio contributes $100,000 in exchange for a 40% interest in the calendar year ABC LLC, which is

Question:

Enercio contributes $100,000 in exchange for a 40% interest in the calendar year ABC LLC, which is taxed as a partnership. This year, the LLC generates $80,000 of ordinary taxable income and has no separately stated income or expenses. Enercio withdrew $10,000 from the partnership during the year.

Enercio is taxed on what amount of ABC’s income? On how much of the $10,000 distribution will Enercio be taxed?

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...

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