Becca Franklin and Suzanne Peterson Formed an LLC as Co-Owners

question 107

Multiple Choice

Becca Franklin and Suzanne Peterson formed an LLC as co-owners and managers.The LLC made $275,000 after expenses last year.There are no provisions in their operating agreement on how profits are to be split.​
-What amount will Becca declare on her income tax return from the LLC?​

• A)​$137,500
• B)​the full $275,000
• C)nothing, because the LLC reports that income and pays the taxes
• D)the LLC must retain at least half of the $275,000 and Becca reports half of $137,500

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