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

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Definitions:

Consuming Alcohol

The act of drinking beverages that contain ethanol, which is a psychoactive substance.

Risk Of Harm

The potential for actions, situations, or substances to cause physical, emotional, or psychological injury or damage.

College Administrators

Individuals who manage the operational aspects of colleges and universities, such as admissions, finance, and student services.

Alcohol-Related Problem

Issues resulting from the excessive consumption of alcohol, affecting one's health, social, or legal standing.