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Business, 17.03.2020 06:39 beccamae9526

Amy and Mitchell share equally in the profits, losses, and capital of the accrual basis AM Products LLC. Amy is a managing member of the LLC (treated as a general partner) and is a U. S. person. At the beginning of the current year, Amy's capital account has a balance of $300,000, and the LLC has debts of $200,000 payable to unrelated parties. The debts are recourse to the LLC, but neither of the LLC members has personally guaranteed them. Assume that all LLC debt is shared equally between the partners. The following information about AM's operations for the current year is obtained from the LLC's records.

Ordinary income $400,000
Interest income 4,000
Short-term capital loss 6,000
Long-term capital gain 12,000
Charitable contribution 4,000
Cash distribution to Amy 20,000
Year-end LLC debt payable to unrelated parties is $140,000. If all transactions are reflected in her beginning capital and basis in the same manner.

Prepare Amy's capital account rollforward from the beginning to the end of the tax year.

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Amy and Mitchell share equally in the profits, losses, and capital of the accrual basis AM Products...
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