Georgio owns a 20 percent profits and capital interest in Rain Tree LLC. For the current year, Rain Tree had the following revenues, expenses, galns, and losses: Sales revenue Gain on sale of land ($1231) Cost of goods sold Depreciation-WICRS $179 deduction $ 75,250 11,400 (40,500) (7, 8ee) (10,700) (16, eee) (4,700) 7,400 5,850 (3,250) Emplayee wages Nondeductible fines and penalties Municipal bond interest Short-tern capital gains Guaranteed payment to Sandra "Assume the 5179 property placed in service limitation does not apply.

Georgio owns a 20 percent profits and capital interest in Rain Tree LLC. For the current year, Rain Tree had the following revenues, expenses, galns, and losses: Sales revenue Gain on sale of land ($1231) Cost of goods sold Depreciation-WICRS $179 deduction $ 75,250 11,400 (40,500) (7, 8ee) (10,700) (16, eee) (4,700) 7,400 5,850 (3,250) Emplayee wages Nondeductible fines and penalties Municipal bond interest Short-tern capital gains Guaranteed payment to Sandra "Assume the 5179 property placed in service limitation does not apply.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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! Required information [The following information applies to the questions displayed below.] Georgio owns a 10 percent profits and capital interest in Rain Tree LLC. For the current year, Rain Tree had the following revenues, expenses, gains, and losses: Sales revenue Gain on sale of land (§1231) Cost of goods sold Depreciation-MACRS §179 deduction* Employee wages Nondeductible fines and penalties Municipal bond interest Short-term capital gains Guaranteed payment to Sandra *Assume the §179 property placed in service limitation does not apply. a. How much ordinary business income (loss) is allocated to Georgio for the year? Description Sales revenue Ordinary Business Income $ 92,000 19,500 (48,000) (6,650) (17,100) (13,900) (4,500) 7,000 5,250 (5,700) Total Amount Allocated to Georgio
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