William Is a Member of an LLC

question 84

Multiple Choice

William is a member of an LLC. His Schedule K-1 reported a $1,200 share of capital loss and a $3,000 share of Section 1231 gain. William recognized a $4,500 capital gain on the sale of marketable securities and a $15,000 Section 1231 loss on the sale of business equipment. What is the net effect of these gains and losses on William's taxable income?

• A) $3,300 net capital gain; $12,000 deductible net Section 1231 loss
• B) $4,500 net capital gain; $12,000 deductible net Section 1231 loss
• C) $4,500 net capital gain; $15,000 deductible net Section 1231 loss
• D) $3,300 net capital gain; -0- deductible net Section 1231 loss

---

Definitions:

Outcome Simulations

The mental process of envisioning or predicting the consequences or results of actions, scenarios, or events.

Aphasia

A neurological condition characterized by the loss or impairment of the ability to communicate through speech, writing, or comprehension.

Linguistic Determinism

The idea that language shapes and limits human thought processes and perceptions.

Telegraphic Speech

A stage in language development where toddlers combine a limited number of words to convey a message, mimicking the concise style of telegraphic messages.