Kim Received a 1/3 Profits and Capital Interest in Bright

question 84

Multiple Choice

Kim received a 1/3 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 $30,000 guaranteed payment each year for ongoing services she provides to the LLC. For X4, Bright Line reported the following revenues and expenses: Sales - $150,000, Cost of Goods Sold - $90,000, Depreciation Expense - $45,000, Long-Term Capital Gains - $15,000, Qualified Dividends - $6,000, and Municipal Bond Interest - $3,000. How much ordinary business income (loss) will Bright Line allocate to Kim on her Schedule K-1 for X4?

• A) ($15,000)
• B) $6,000
• C) $9,000
• D)$15,000
• E)None of these

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Definitions:

American Family

A social unit living together in the United States, characterized by varying structures including nuclear, single-parent, extended, and more, influenced by diverse cultural backgrounds.

Nuclear Family

A family unit that consists of parents (both a mother and a father) and their biological or adopted children, living together as a single household.

Mate Selection

The process by which individuals choose partners with whom to form a romantic or sexual relationship.

Love

is a complex emotion characterized by deep affection, attachment, and care towards someone or something.