Ryan Ross ( 1 1 1 - 1 1 - 1 1 1 2 ) , Oscar
Fantastic news! We've Found the answer you've been seeking!
Question:
Ryan Ross Oscar Omega Clark Carey and Kim Kardigan are equal active members in ROCK the Ages LLC ROCK serves as agent and manager for prominent musicians in the Los Angeles area. The LLCs Federal ID number is It uses the cash basis and the calendar year and began operations on January Its current address is Wilshire Boulevard, Suite Los Angeles, CA ROCK was the force behind such music icons as Adrianna Venti, Drake Malone, Elena Gomez, Tyler Quick, Queen Bey, and Bruno Mercury and has had a very profitable year. The following information was taken from the LLCs income statement for the current year.
Revenues
Fees and commissions $
Taxable interest income from bank deposits
Taxexempt interest
Net gain on stock sales
Total revenues $
Expenses
Advertising and public relations $
Charitable contributions
expense
Employee salaries and wages
Guaranteed payment services Ryan Ross, office manager
Guaranteed payment services other members
Business meals, subject to disallowance
Business restaurant meals and travel deductible
Legal and accounting fees
Office rentals paid
Interest expense on operating line of credit
Insurance premiums
Office expense
Payroll taxes
Utilities
Total expenses $
Recently, ROCK has taken advantage of bonus depreciation and deductions and fully remodeled the premises and upgraded its leasehold improvements. This year, ROCK wrapped up its remodel with the purchase of $ of office furniture for which it will claim a deduction. For simplicity, assume that ROCK uses the same cost recovery methods for both tax and financial purposes. There is no depreciation adjustment for alternative minimum tax purposes.
ROCK invests much of its excess cash in nondividendpaying growth stocks and taxexempt securities During the year, the LLC sold two securities On June ROCK purchased shares of Tech, Inc., stock for $; it sold those shares on December for $ On March ROCK purchased shares of BioLabs, Inc., stock for $; it sold those shares for $ on December These transactions were reported to the IRS on Forms B; ROCK's basis in these shares was reported.
Net income per books is $ On January the members' tax basis capital accounts equaled $ each. No additional capital contributions were made in In addition to their guaranteed payments, each member withdrew $ cash during the year. All contributions and distributions have been in cash, so the LLC has no net unrecognized c gain or loss. The LLCs balance sheet as of December is as follows.
Beginning Ending
Cash $ $
Taxexempt securities
Marketable securities
Leasehold improvements, furniture, and equipment
Accumulated depreciation
Total assets $ $
Operating line of credit $ $
Capital, Ross
Capital, Omega
Capital, Carey
Capital, Kardigan
Total liabilities and capital $ $
The firm's activities do not constitute "qualified production activities" for purposes of the deduction. Note that the deduction is a businessrelated expense. The LLCs UBIA unadjusted basis immediately after acquisition equals the total original cost of all leasehold improvements, or $
All debt is shared equally by the members. Each member has personally guaranteed the debt of the LLC All members are active in LLC operations. The business code for the entity is
Complete the Form for ROCK the Ages LLC with appropriate forms and schedules. Prepare Schedule K for Ryan Ross
Related Book For
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st Edition
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young
Posted Date: