Required Information Problem 09-59 (LO 09-4) (Algo) [The following information applies to the questions displayed below.] Georgio owns a 10 percent profits and capital interest in Rain Tree LLC. For the current year, Rain Tree had the following revenues, expenses, gains, and losses: Sales revenue Gain on sale of land (§1231) Cost of goods sold Depreciation-MACRS §179 deduction* Employee wages Nondeductible fines and penalties Municipal bond interest Short-term capital gains Guaranteed payment to Sandra *Assume the $179 property placed in service limitation does not apply. Problem 09-59 Part a (Algo) Description a. How much ordinary business income (loss) is allocated to Georgio for the year? Sales revenue Ordinary Business Income $ 85,000 13,600 (46,750) (4,250) (14,500) (29,000) (3,800) 7,300 Total Amount Allocated to Georgio 6,150 (3,780)
Required Information Problem 09-59 (LO 09-4) (Algo) [The following information applies to the questions displayed below.] Georgio owns a 10 percent profits and capital interest in Rain Tree LLC. For the current year, Rain Tree had the following revenues, expenses, gains, and losses: Sales revenue Gain on sale of land (§1231) Cost of goods sold Depreciation-MACRS §179 deduction* Employee wages Nondeductible fines and penalties Municipal bond interest Short-term capital gains Guaranteed payment to Sandra *Assume the $179 property placed in service limitation does not apply. Problem 09-59 Part a (Algo) Description a. How much ordinary business income (loss) is allocated to Georgio for the year? Sales revenue Ordinary Business Income $ 85,000 13,600 (46,750) (4,250) (14,500) (29,000) (3,800) 7,300 Total Amount Allocated to Georgio 6,150 (3,780)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required Information
Problem 09-59 (LO 09-4) (Algo)
[The following information applies to the questions displayed below.]
Georgio owns a 10 percent profits and capital interest in Rain Tree LLC. For the current year, Rain Tree had the following
revenues, expenses, gains, and losses:
Sales revenue
Gain on sale of land ($1231)
Cost of goods sold
Depreciation-MACRS
§179 deduction*
Employee wages
Nondeductible fines and penalties
Municipal bond interest
Short-term capital gains.
Guaranteed payment to Sandra
*Assume the §179 property placed in service limitation does not apply.
Description
Problem 09-59 Part a (Algo)
a. How much ordinary business income (loss) is allocated to Georgio for the year?
Sales revenue
Ordinary Business Income
$ 85,000
13,600
(46,750)
(4,250)
(14,500)
Total
Amount
Allocated to
Georgio
(20,000)
(3,800)
7,300
6,150
(3,700)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F850dedb7-06f1-4b41-a40f-d9fa61ab921c%2Fe19c7412-6baa-4b6f-b5c0-f50a3ef8366b%2Fpxcwlmk_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
Problem 09-59 (LO 09-4) (Algo)
[The following information applies to the questions displayed below.]
Georgio owns a 10 percent profits and capital interest in Rain Tree LLC. For the current year, Rain Tree had the following
revenues, expenses, gains, and losses:
Sales revenue
Gain on sale of land ($1231)
Cost of goods sold
Depreciation-MACRS
§179 deduction*
Employee wages
Nondeductible fines and penalties
Municipal bond interest
Short-term capital gains.
Guaranteed payment to Sandra
*Assume the §179 property placed in service limitation does not apply.
Description
Problem 09-59 Part a (Algo)
a. How much ordinary business income (loss) is allocated to Georgio for the year?
Sales revenue
Ordinary Business Income
$ 85,000
13,600
(46,750)
(4,250)
(14,500)
Total
Amount
Allocated to
Georgio
(20,000)
(3,800)
7,300
6,150
(3,700)
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