Question

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; 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)?

1) $95,000
2) $68,000
3) $78,000
4) $102,000
5) $98,000

Answer 1

The net income (loss) for ABC LLC on its Analysis of Income (Loss) is $88,000, which does not match any of the provided options, suggesting a possible error in the question or answer choices.

Step-by-step explanation:

The student asked how much ABC LLC will show as net income (loss) on its Analysis of Income (Loss). To calculate this, we need to sum up all income and subtract losses and other deductions. The listed items are ordinary income ($100,000), interest income ($3,000), long-term capital loss (-$4,000), charitable contributions (-$1,000), depreciation adjustment (-$10,000), and cash distributions do not affect the computation of net income. Therefore, the net income would be:

$100,000 + $3,000 - $4,000 - $1,000 - $10,000 = $88,000.

It seems none of the provided options 1) $95,000 2) $68,000 3) $78,000 4) $102,000 5) $98,000 correctly reflect this calculation, so there may be a mistake in the question or the offered answer choices.