Question

Exploit Media, LLC. has three members: WACS Partners, Elyse O'Reilly and Encourtier Newspaper, LLC. On January 1, 2012 the members hard equity of $205-400, $37,700, $175,900 respестие WACS Paters contributed an additional $47,400 to Explot Media LLC. on June 1, 2012 Elyse O'Reilly received an annual salary allowance of $54.500 dareg 2012. The members sully accounts am also deth 20% on each meter's aruay 1 capital butarice, Any remaining income is to be utared in the rate of 4:3:3 among the three members, The revenues, керегеes, and net income for Expo Media, LLC. for 2012 wer $1,230,000 891,400 and $338,600 respectively. Amounts equal is the salary and interest нев mentaars withdrawn by the

Required

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Answer 1

The distribution of income among the members of Exploit Media, LLC. involves calculating interest on initial capital, taking into account Elyse O'Reilly's salary, WACS Partners' additional capital, and then distributing the remaining balance in a 4:3:3 ratio.

Step-by-step explanation:

To determine the distribution of income among the three members of Exploit Media, LLC., we need to follow the guidelines provided:

1. Calculate interest on capital at 20% for each member:
   WACS Partners: $205,400 x 20% = $41,080
   Elyse O'Reilly: $37,700 x 20% = $7,540
   Encourtier Newspaper, LLC.: $175,900 x 20% = $35,180
2. Consider Elyse O'Reilly's annual salary allowance: $54,500.
3. Add the additional capital contribution by WACS Partners: $47,400.
4. Subtract these allocations from the net income of $338,600 to find the remaining balance for distribution.
5. Distribute the remaining balance in the ratio of 4:3:3:

Calculating the remaining balance for distribution:

Net Income: $338,600
Interest Allocations: $41,080 + $7,540 + $35,180 = $83,800
Salary Allowance to Elyse O'Reilly: $54,500
Remaining Balance: $338,600 - ($83,800 + $54,500) = $200,300

Distribution of remaining balance:

Total parts = 4+3+3 = 10 parts
Each part = $200,300 / 10 = $20,030
WACS Partners (4 parts): $20,030 x 4 = $80,120
Elyse O'Reilly (3 parts): $20,030 x 3 = $60,090
Encourtier Newspaper, LLC. (3 parts): $20,030 x 3 = $60,090

The final allocation would include the initial capital, interest, salary allowance, additional capital contributed, and the income distributed as per the 4:3:3 ratio.