Question: Question Content Area Meredith is a passive 3 0 % member of the MNO LLC . She is not a managing member and she does

Question Content Area Meredith is a passive 30% member of the MNO LLC. She is not a managing member and she does not participate in any activities of the LLC. Her interest is more in the nature of an investment. In the current year, Meredith's distributive share of income from the LLC was $50,000. In addition, she received a guaranteed payment of $40,000 for the use of her capital. Assume that her income from other sources exceeds $500,000. How much of Meredith's LLC income will be subject to the self-employment (SE) tax and the net investment income (NII) tax? (Disregard the additional Medicare tax on upper-income taxpayers.) a. $0 SE tax; $0 NII tax. b. $50,000 SE tax; $40,000 NII tax. c. $0 SE tax; $90,000 NII tax. d. $0 SE tax; $40,000 NII tax.

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