Kim received a one-third 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. $9,000.
e. $15,000.
f. None of the choices will be reported as ordinary business income (loss) on Schedule K-1.

Answers

Answer 1

Answer:

Answer:

f. None of the choices will be reported as ordinary business income (loss) on Schedule K-1.

Explanation:

Note: Guaranteed payments have no effect on Kim's outside basis.

Bright Line LLC will be reporting on page 1 of Form 1065, an ordinary loss of $15,000 ($150000 - $90000 - $45000 - $30000)

1/3rd of $15,000 = $5,000. That is, $5,000 loss must be allocated to Kim on Schedule K-1. So, option f is the correct answer.

Related Questions

In an efficient market, professional portfolio management can offer all of the following benefits except which of the following? A. A superior risk-return trade-off B. Low-cost diversification C. A targeted risk level D. Low-cost record keeping
Hernandez, Inc. signed a ten-year noncancelable lease for a heavy duty drill press. The lease stipulated annual payments of $300,000 starting at the beginning of the first year, with title passing to Hernandez at the expiration of the lease. Hernandez treated this transaction as a operating lease. The drill press has an estimated useful life of 15 years, with no salvage value. Hernandez uses straight-line amortization for all of its plant assets. Aggregate lease payments were determined to have a present value of $1,800,000, based on implicit interest of 10%. What amount of amortization expense should be recorded for 2021?
A company's sales forecast would likely consider all of the following factors except: advertising and pricing policies. top management's attitude toward decentralized operating structures. general economic and industry trends. competition. political and legal events.
A movie ticket cost $0.5 in 1970. The CPI (1970) and the CPI (2011) was 38.8 and 218.8 respectively. How much money would you have needed in 2011 to buy a movie ticket?help please
How might different types of office design influence employee social interaction, collaboration, and creativity? Should there be encouraged even in organizations without an innovative culture?

An institutional broker wants to review their book of customers to see which are most active. Given a list of trades by customer name, determine which customers account for at least 5% of the total number of trades. Order the list alphabetically ascending by name.

Answers

Answer:

Alpha

Beta

Delta

Epsilon

Zeta

Explanation:

The customers list should be updated and sorted periodically to identify regular customers and those customers with big orders. There are many customers in the list and the list is not sorted according to alphabetical order. Those customers which account for more than or at least 5% of total trade are Alpha, Beta, Delta, Epsilon and Zeta. These are place first in list among other customers.

What can I do to make money with no money and no credit?

Answers

Work at a job that does not take them two things like babysitting

Online jobs like surveys and Ux Testing, definitely check out UserTesting and Toluna

(a) On March 2, Sage Hill Company sold $891,900 of merchandise to Oriole Company on account, terms 3/10, n/30. The cost of the merchandise sold was $527,400. (b) On March 6, Oriole Company return $114,400 of the merchandise purchased on March 2. The cost of the merchandise returned was $64,100. (c) On March 12, Sage Hill Company received the balance due from Oriole Company.

Answers

Answer:

See explanation section.

Explanation:

Sage Hill Company

Journal entries

Requirement A.

March 2 Account receivable - Oriole Company debit $891,900

Sales revenue credit $891,900

Note: Assume that the company used gross method under a perpetual inventory system, during the sales, the company did not deduct the discount.

Cost of good sold Debit $527,400

Merchandise inventory Credit $527,400

Note: Under the perpetual inventory system, a seller has to record cost of good sold journal.

Requirement B & C.

March 6 Sales Returns and Allowances Debit $114,400

Account Receivable Credit $114,400

Note: As the company did not calculate the cost of return goods, we did not give the cost of merchandise journal.

March 12 Cash Debit $891,900

Sales Discounts Debit $26,757

Account Receivable Credit $891,900

Note: Calculation: (891,900-(891,900 × 3%) = (891,900 - 26,757) = $865,143.

As the company received the amount with in the discount period, the customer got the discount from the seller.

The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $)
Assets 2016
Cash and securities $2,145
Accounts receivable 8,970
Inventories 12,480
Total current assets $23,595
Net plant and equipment $15,405
Total assets $39,000
Liabilities and Equity Accounts payable $7,410
Accruals 4,290
Notes payable 5,460
Total current liabilities $17,160
Long-term bonds $7,800
Total liabilities $24,960
Common stock $5,460
Retained earnings 8,580
Total common equity $14,040
Total liabilities and equity $39,000
Income Statement (Millions of $) 2016
Net sales $58,500
Operating costs except depreciation 54,698
Depreciation 1,024
Earnings before interest and taxes (EBIT) $2,779
Less interest 829
Earnings before taxes (EBT) $1,950
Taxes 683
Net income $1,268
Other data: Shares outstanding (millions) 500.00
Common dividends (millions of $) $443.63
Int rate on notes payable & L-T bonds 6.25%Federal plus state income tax rate 35%Year-end stock price $23.77A. What is the firm's current ratio?B. What is the firm's quick ratio?C. What is the firm's days sales outstanding? Assume a 365-day year for this calculation.D. What is the firm's total assets turnover?E. What is the firm's inventory turnover ratio?F. What is the firm's TIE?G. What is the firm's debt/assets ratio?H. What is the firm's ROA?I. What is the firm's ROE?

Answers

Answer:

A. 1.375

B. 0.648

C. 77.87 days

D. 1.5 times

E. 4.69 times

F. 3.35 times

G. 34 %

H. 4.63 %

I. 23.22%

Explanation:

A. What is the firm's current ratio

current ratio = current assets / current liabilities

= $23,595 / $17,160

= 1.375

B. What is the firm's quick ratio

quick ratio = (current assets - inventory) / current liabilities

= ($23,595 - $12,480) / $17,160

= 0.648

C. What is the firm's days sales outstanding Assume a 365-day year for this calculation.

days sales outstanding = Inventory / (Sales / 365)

= $12,480 / ($58,500 /365)

= 77.87 days

D. What is the firm's total assets turnover

total assets turnover = Sales / Total Assets

= $58,500 / $39,000

= 1.5 times

E. What is the firm's inventory turnover ratio?

inventory turnover ratio = Sales / Inventory

= $58,500 / $12,480

= 4.69 times

F. What is the firm's TIE?

Total Interest Expense (TIE) = Earnings before interest and taxes (EBIT) / Total Interest Expense

= $2,779 / $829

= 3.35 times

G. What is the firm's debt/assets ratio?

debt/assets ratio = Total Debt / Total Assets × 100

= ($5,460 + $ $7,800) / $39,000 × 100

= 34 %

H. What is the firm's ROA?

Return on Assets (ROA) = Earnings Before Interest After Tax (EBIAT) / Total Assets × 100

= ($1,268 + ($829 × 65%)) / $39,000 × 100

= 4.63 %

I. What is the firm's ROE?

Return on Equity (ROE) = Net Income / Total Shareholders Funds

= $1,268 / $5,460 × 100

= 23.22%

Final answer:

The current ratio is 1.37, the quick ratio is 0.65, and the days sales outstanding is 56.15.

Explanation:

A. The current ratio is calculated by dividing total current assets by total current liabilities:
Current Ratio = Total Current Assets / Total Current Liabilities
Current Ratio = $23,595 / $17,160
Current Ratio = 1.37

B. The quick ratio, also known as the acid-test ratio, is calculated by dividing quick assets by total current liabilities:
Quick Ratio = (Cash and Securities + Accounts Receivable) / Total Current Liabilities
Quick Ratio = ($2,145 + $8,970) / $17,160
Quick Ratio = 0.65

C. The days sales outstanding measures how long it takes for a company to collect its accounts receivable:
Days Sales Outstanding = Accounts Receivable / (Net Sales / 365)
Days Sales Outstanding = $8,970 / ($58,500 / 365)
Days Sales Outstanding = 56.15

Learn more about financial ratios here:

brainly.com/question/31531442

#SPJ3

Use the following classification to determine which category each of the following goods falls into. Goods Private Good Club Good Common Resource Public Good Museums that require admission fees Public swimming pools with free admission during summer Metered parking at a municipal parking lot Flood control Public basketball courts

Answers

Answer:

swimming pool is public good. basketball court public good. museums with admission fee are club good, metered parking public good. flood control public good

Explanation:

Which 2 statements are correct about using the client details and dashboard screens of QuickBooks Online Accountant and working with client company files

Answers

Answer:

You can import QuickBooks Online Trial Balance data into ProConnect Tax Online to prepare tax returns via the client dashboard

You can start a new tax return from the client dashboard for non QuickBooks Online clients or clients that are using QuickBooks Online

Explanation:

While using the client details and the dash borad screens of an online accountant who are working with the client files should do the importing of the data related to the trial balance into the proconnect tax so that the tax returns could be prepared

Also the new tax return could be started from the client dashboard via using the quick books online

hence, these two statements are correct

Other Questions

Consider the following information: Probability of State Rate of Return if State Occurs Economy of Economy Stock A Stock B Recession .20 .010 – .35 Normal .55 .090 .25 Boom .25 .240 .48 a. Calculate the expected return for the two stocks.'

Your company sponsors a 401(k) plan into which you deposit 10 percent of your $123,000 annual income. Your company matches 75 percent of the first 10 percent of your earnings. You expect the fund to yield 12 percent next year. Assume you are currently in the 31 percent tax bracket. a. What is your annual investment in the 401(k) plan? (Round your answer to the nearest whole number. (e.g., 32))b. What is your one-year return?

There are seven main instruments used in trade policy with _____ being the oldest and the simplest. local content requirements tariffs subsidies voluntary export restraints import quotas

1. List names of all employees who are not from Department A00. 2. What is the average of all employee salaries? 3. Which employees earn more than average? 4. List names and salaries of employees earning more than $35,000. 5. Increase Ms. Haas's salary to $500,000 and then list her new monthly salary.