Question: In 2 0 times 2 , Waters LLC generates ordinary business income of $ 4 0 , 0 0 0 and makes no distributions

In 20\times 2, Waters LLC generates ordinary business income of $40,000 and makes no distributions to its partners. In 20Ca, Waters recognites $0 ordinary income, but makes a $20,000 total cash distribution to its partners. Pink, a 25% member in Waters, has an outside basis in Waters of over $200,000when20x begins. What amount of income will Pink recognize in 20\times 2 and 20\times 3?
$10,000 in 202 and $5,000 in 203
$10,000 in 202 and $0 in 203
$0 in 202 and $15,000 in 203
In 2 0 \ times 2 , Waters LLC generates ordinary

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