Question

Kim received a 1/3 profits and capital interest in Bright Line, LLC in exchangefor legal services she provided. In addition to her share of partnership prohts or losses, she receives a $30,000/guaranteed payment gach year for ongoing services she provides to the LLC Eor X4 Bright Line reported-the following revenues'and expenses: Sales $150,000 Cost of Goods Sold $90,000Depreciation Expense $12,000) Long-Term Capital Gains $15.000, Qualified Dividends $6,000, and Munic pal Bond Interest $3,000. How much ornary bueas eame floss will Bright Line allocate to Kim on her Schedule K-1 for X4?

Answer 1

calculation of income or loss allocated to Kim on the schedule K-1 for x4
particulars	$
sales	150000
less :
cost of good sold	90000
depreciation expenses	12000
guarantee payment	30000
income	18000
income allocated to Kim on the schedule K-1 for x4
= 1/3rd of 18000
= $6000