Question: please complete part E Problem 14-16 (Algorithmic) (LO. 4, 5, 7) Amy and Mitchell share equally in the profits, losses, and capital of the accrual


Problem 14-16 (Algorithmic) (LO. 4, 5, 7) Amy and Mitchell share equally in the profits, losses, and capital of the accrual basis AM Products LLC. The LLC does not need to report financial information to any third parties, so capital accounts are determined using tax rules (rather than GAAP). 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 tax year, Amy's capital account has a balance of $840,000, and the LLC has debts of $546,000 payable to unrelated parties. All debts are recourse to the LLC, but neither of the LLC members has personally guaranteed them. The following information about AM's operations for the current year is obtained from the LLC's records. * Operating income equals revenue less operating expenses (other than expenses listed separately above). Year-end LC debt payable to unrelated parties is $382,200. Assume that all transactions are reflected in Amy's beginning capital and basis in the same manner. Also assume that all AM Products' activities are eligible for the qualified business income deduction
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