Kim received a 1/3 profits and capital interestin Bright Line, LLC in exchange for legalservices she provided. In addition to her shareof partnership profits or losses, she receives a$22,000 guaranteed payment each year forongoing services she provides to the LLC. ForX4, Bright Line reported the followingrevenues and expenses: Sales - $142,000,Cost of Goods Sold - $82,000, DepreciationExpense - $41,000, Long-Term Capital Gains -$7,000, Qualified Dividends - $5,200, andMunicipal Bond Interest - $3,200. How muchordinary business income (loss) will BrightLine allocate to Kim on her Schedule K-1 forX4?Multiple Choice($3,000).$10,600.$13,800.$19,000.None of the choices will be reported asordinary business income (loss) on ScheduleK-1.

Schedule K-1 form is used by the partnership form of businesses to report the income and deductions…

X4, Bright Line reported the following revenues and expenses: Sales - $142,000, Cost of Goods Sold - $82,00O, Depreciation Expense - $41,000, Long-Term Capital Gains - $7,000, Qualified Dividends - $5,200, and Municipal Bond Interest - $3,200. How much ordinary business income (loss) will Bright Line allocate to Kim on her Schedule K-1 for X4?

X4, Bright Line reported the following revenues and expenses: Sales - $142,000, Cost of Goods Sold - $82,00O, Depreciation Expense - $41,000, Long-Term Capital Gains - $7,000, Qualified Dividends - $5,200, and Municipal Bond Interest - $3,200. How much ordinary business income (loss) will Bright Line allocate to Kim on her Schedule K-1 for X4?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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