Enercio contributes $100,000 in exchange for a 40% interest in the calendar year ABC LLC, which is taxed as a partnership. This year, the LLC generates $80,000 of ordinary taxable income and has no separately stated income or expenses. Enercio with- drew $10,000 from the partnership during the year. Enercio is taxed on what amount of ABC’s income? On how much of the $10,000 distribution will Enercio be taxed?
Enercio contributes $100,000 in exchange for a 40% interest in the calendar year ABC LLC, which is taxed as a partnership. This year, the LLC generates $80,000 of ordinary taxable income and has no separately stated income or expenses. Enercio with- drew $10,000 from the partnership during the year. Enercio is taxed on what amount of ABC’s income? On how much of the $10,000 distribution will Enercio be taxed?
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 58P
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Enercio contributes $100,000 in exchange for a 40% interest in the calendar year ABC LLC, which is taxed as a
Enercio is taxed on what amount of ABC’s income?
On how much of the $10,000 distribution will Enercio be taxed?
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