JD is a member in the Canyons North limited liability company. The LLC has opted to be treated as a partnership for federal income tax purposes. At the beginning of the taxable year, JD’s basis in her LLC interest was $50,000. For the current year, her distributive share of Canyons North’s taxable income was $18,000. She received distributions totaling $2,000 per month. How much income will JD report on her current year individual tax return from her interest in Canyons North?
a. $18,000.
b. $24,000.
c. $42,000.
d. $0.