Kristie Is a 25% Member in the KLM LLC

question 223

Multiple Choice

Kristie is a 25% member in the KLM LLC. At the end of the year, KLM has accounts payable of $60,000 (recourse to the LLC but not guaranteed by the LLC members) , and a nonrecourse debt related to real estate of $300,000 (meets the at risk limitation requirements) . In addition, Kristie personally guaranteed a $50,000 liability for KLM's equipment purchases. Which one of the following shows the information that should be reported on Kristie's Schedule K-1 for the year?

• A) $15,000 recourse debt, $75,000 qualified nonrecourse debt.
• B) $90,000 nonrecourse debt.
• C) $90,000 nonrecourse debt, $12,500 recourse debt.
• D) $65,000 recourse debt, $75,000 qualified nonrecourse debt.
• E) $50,000 recourse debt, $15,000 nonrecourse debt, $75,000 qualified nonrecourse debt.

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