he following information applies to the questions displayed below.] Connie recently provided legal services to the Winterhaven LLC and received a 5 percent interest in the LLC as compensation. Winterhaven currently has $57,000 of accounts payable and no other liabilities. The current fair market value of Winterhaven's capital is $250,000. Note: Leave no answer blank. Enter zero if applicable. a. If Connie receives a 5 percent capital interest only, how much income must she report, and what is her tax basis in the LLC interest? b. If Connie receives a 5 percent profits interest only, how much income must she report, and what is her tax basis in the LLC interest? c. If Connie receives a 5 percent capital and profits interest, how much income must she report, and what is her tax basis in the LLC inte
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[The following information applies to the questions displayed below.]
Connie recently provided legal services to the Winterhaven LLC and received a 5 percent interest in the LLC as compensation. Winterhaven currently has $57,000 of accounts payable and no other liabilities. The current fair market value of Winterhaven's capital is $250,000.
Note: Leave no answer blank. Enter zero if applicable.
a. If Connie receives a 5 percent capital interest only, how much income must she report, and what is her tax basis in the LLC interest?
b. If Connie receives a 5 percent profits interest only, how much income must she report, and what is her tax basis in the LLC interest?
c. If Connie receives a 5 percent capital and profits interest, how much income must she report, and what is her tax basis in the LLC interest?
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