Kim Received a One-Third Profits and Capital Interest in Bright

question 102

Multiple Choice

Kim received a one-third profits and capital interest in Bright Line, LLC, in exchange for legal services she provided. In addition to her share of partnership profits or losses, she receives a $23,000 guaranteed payment each year for ongoing services she provides to the LLC. For X4, Bright Line reported the following revenues and expenses: sales-$143,000, cost of goods sold-$83,000, depreciation expense-$40,000, long-term capital gains-$8,000, qualified dividends-$5,300, and municipal Bond interest-$3,300. How much ordinary business income (loss) will Bright Line allocate to Kim on her Schedule K-1 for X4?

• A)($13,000)
• B)$6,000
• C)$8,000
• D)$13,000
• E)None of the choices will be reported as ordinary business income (loss)on Schedule K-1.

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Definitions:

Federal Medicaid

A United States health program that assists low-income individuals and families by covering medical costs.

Medical Model

A framework that treats mental and physical conditions as diseases to be diagnosed and treated by healthcare professionals.

Hospital Births

Childbirth that takes place in a hospital setting, often involving medical professionals and intervention.

Squatting Position

A posture where the knees are bent and the buttocks rest on or near the heels, often used for labor or low-intensity tasks.