The statement of members' equity for Bonanza, LLC, is shown below.

a. What was the income-sharing ratio in 2012?
b. What was the income-sharing ratio in 2013?
c. How much cash did Justin Thomas contribute to Bonanza, LLC, for his interest?
d. Why do the member equity accounts of Idaho Properties, LLC, and Silver Holdings,
LLC, have positive entries for Justin Thomas' contribution?
e. What percentage interest of Bonanza did Justin Thomas acquire?
f. Why are withdrawals less than netincome?

Transcribed Image Text:

Bonanza , LLC Statement of Members Equity For the Years Ended December 31, 2012 and 2013 Idaho Silver Holdings, LLC, Member Equity 420,500 192,000 Justin Thomas Member Equity Total LLC, Member Equity Members Equity $552,000 128,000 $680,000 Members'equity, December 31, 2011 Net income Members' equity, December 31, 2012 Thomas contribution, January 1, 2013 Net income Less member withdrawals Members' equity, December 31, 2013 612,500 225,000 $801,500 $ 972,500 320,000 $1,292,500 270,000 450,000 $250,000 135,000 (50,000) 8,000 12,000 90,000 (32,000) 746,000 (48,000) (130,000) 335,000 1,882,500