ABC LLC reported the following items on the LLC's Schedule K: ordinary income, $100,000; interest income, $3,000; long-term capital loss, ($4,000); charitable contributions, $1,000; AMT depreciation adjustment, $10,000; and cash distributions to partners, $50,000. How much will ABC show as net income (loss) on its Analysis of Income (Loss)?
A) $68,000
B) $78,000
C) $95,000
D) $98,000
E) $102,000

Question

Quizplus · Accepted Answer

The net income (loss) on the Analysis of Income (Loss) is calculated by adding ordinary income and interest income, then subtracting the long-term capital loss and charitable contributions. Thus, $100,000 (ordinary income) + $3,000 (interest income) - $4,000 (capital loss) - $1,000 (charitable contributions) = $98,000. The AMT depreciation adjustment and cash distributions do not affect this calculation.

ABC LLC Reported the Following Items on the LLC's Schedule