Problem 14-17 (LO. 4, 5) Amy and Mitchell share equally in the profits, losses, and capital of the accrual basis AM Products LLC. Amy is the managing member of the LLC (treated as a general partner) and is a U.S. citizen. At the beginning of the current tax year, Amy's capital account has a balance of $300,000, and the LLC has recourse debts of $200,000 payable to unrelated parties. All partnership recourse debt is shared equally between the partners. The following information about AM's operations for the current year is obtained from the entity's records $900,000 200,000 300,000 4,000 6,000 12,000 4,000 20,000 Ordinary income W-2 wages to employees Depreciation expense Interest income from P&G bond Long-term capital loss Short-term capital gain Charitable contribution Cash distribution to Amy Unadjusted basis of partnership depreciable property 1,600,000 Year-end LLC debt payable to unrelated parties is $140,000 What income, gains, losses, and deductions does Amy report on her income tax return? Year-end LLC debt payable to unrelated parties is $140,000. What income, gains, losses, and deductions does Amy report on her income tax return? Share of ordinary income Share of net short-term capital gain Share of interest income Share of charitable contribution deduction Complete the following paragraphs regarding other tax items that may affect Amy? Amy's distributive share of the LLC's ordinary incomeis subject to self-employment tax. The cash distribution Amy received would not be taxable and the decrease in Amy's share of LLC liabilities would not betaxable. Amy may be eligible to deduct up to 20%of the ordinary income as qualified business income under $ 199A, and will make that calculation on her return. This deduction does not require a cash outflow by Amy or the LLC, and it does not affect her basis or capital account. Her net investment income from the LLC (e.g., interest and gains) may be subject to the 3.8% net investment income tax under $ 1411