Admitting a New LLC Member With Bonus Alert Medical, LLC, consists of two doctors, Abrams and Lipscomb, who share in all income and losses according to a 2:3 income-sharing ratio. Dr. Lin has been asked to join the LLC. Prior to admitting Lin, the assets of Alert Medical were revalued to reflect their current market values. The revaluation resulted in medical equipment being increased by $20,000. Prior to the revaluation, the equity balances for Abrams and Lipscomb were $192,000 and $220,000, respectively. a. Provide the journal entry for the asset revaluation. If an amount box does not require an entry, leave it blank. Medical Equipment fill in the blank 2ad938f58fb4044_2 fill in the blank 2ad938f58fb4044_3 Abrams, Member Equity fill in the blank 2ad938f58fb4044_5 fill in the blank 2ad938f58fb4044_6 Lipscomb, Member Equity fill in the blank 2ad938f58fb4044_8 fill in the blank 2ad938f58fb4044_9 b. Provide the journal entry for the bonus under the following independent situations: 1. Lin purchased a 30% interest in Alert Medical, LLC, for $246,000. If an amount box does not require an entry, leave it blank. Cash fill in the blank b58d1603006f076_2 fill in the blank b58d1603006f076_3 Abrams, Member Equity fill in the blank b58d1603006f076_5 fill in the blank b58d1603006f076_6 Lipscomb, Member Equity fill in the blank b58d1603006f076_8 fill in the blank b58d1603006f076_9 Lin, Member Equity fill in the blank b58d1603006f076_11 fill in the blank b58d1603006f076_12 2. Lin purchased a 25% interest in Alert Medical, LLC, for $125,000. If an amount box does not require an entry, leave it blank. Cash fill in the blank 9745ef015076fd1_2 fill in the blank 9745ef015076fd1_3 Abrams, Member Equity fill in the blank 9745ef015076fd1_5 fill in the blank 9745ef015076fd1_6 Lipscomb, Member Equity fill in the blank 9745ef015076fd1_8 fill in the blank 9745ef015076fd1_9 Lin, Member Equity fill in the blank 9745ef015076fd1_11 fill in the blank 9745ef015076fd1_12

Kim received a 1/3 profits and capital interest in Bright Line, LLC in exchange for legal services she provided. In addition to her share of partnership profits or losses, she receives a $22,000 guaranteed payment each year for ongoing services she provides to the LLC. For X4, Bright Line reported the following revenues and expenses: Sales - $142,000, Cost of Goods Sold - $82,000, Depreciation Expense - $41,000, Long-Term Capital Gains - $7,000, Qualified Dividends - $5,200, and Municipal Bond Interest - $3,200. How much ordinary business income (loss) will Bright Line allocate to Kim on her Schedule K-1 for X4? Multiple Choice ($3,000). $10,600. $13,800. $19,000. None of the choices will be reported as ordinary business income (loss) on Schedule K-1.

Dave LaCroix recently received a 10 percent capital and profits interest in Cirque Capital LLC in exchange for consulting services he provided. If Cirque Capital had paid an outsider to provide the advice, it would have deducted the payment as compensation expense. Cirque Capital's balance sheet on the day Dave received his capital interest appears below: Assets: Cash Investments Land Totals $ 480,000 Liabilities and capital: Nonrecourse liabilities Tatsuki* Robert* Totals "Assume that Tatsuki's basis and Robert's basis in their LLC interests equal their tax basis capital accounts plus their respective shares of nonrecourse liabilities. Note: Leave no answer blank. Enter zero if applicable. $ 120,000 180,000 180,000 Basis $ 120,000 110,000 250,000 Fair Market Value $ 120,000 140,000 380,000 $ 640,000 $ 120,000 260,000 260,000 $ 480,000 $ 640,000 e. Compute each member's tax basis in his LLC interest immediately after Dave's receipt of his interest if Dave receives only a profits…

Raymond is a senior partner in a manufacturing firm and is approaching retirement age. In discussing succession planning with the company partners, two alternatives have been presented to Raymond. The first alternative would call for Raymond to receive a distribution of his share of current-year 2015 profits on March 31, 2016, along with a lump sum payment of $1,500,000 for his capital balance. The 2015 profit-sharing agreement is as follows:                                                     Component Raymond     Other PartnersSalaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $125,000             $300,000Bonus on income after the bonus . . . . . . .. . . 10%                      0%Percentage of remaining profits. . . . . . . . .. . . 40%                    60%The second alternative would consist of the following components:1. A distribution of his share of current-year profits onMarch 31, 2016.2. A distribution of his share of 2016–2017 profits on March 31 of…