LLC Net Income and Statement of Members\' Equity Marvel Media, LLC, has three me
ID: 2408725 • Letter: L
Question
LLC Net Income and Statement of Members' Equity Marvel Media, LLC, has three members: WLKT Partners, Madison Sanders, and Observer Newspaper, LLC. On January 1, 20Y2, the three members had equity of $335,000, $85,000, and $200,000, respectively. WLIT Partners contributed an additional $80,000 o Marvel Media ??, n june 1 2 2. Madison gende recer ed an annual saa alovanceo during O ne members equity accounts are also credited with 15% interest on each members January 1 capital balance. Any remaining income is to be shared in the ratio of 4:3:3 among the three members. The revenues, expenses and net income for Marvel Media, LLC, for 20Y2 were $624,812, $54,812 and $570,000 respectively. Amounts equal to the salary and interest allowances were withdrawn by the members. Schedule of Division of Income WLKT Partners Madison Sanders Observer Newspaper, LLC Total Salary allowance Interest allowance Remaining income (4:3:3) Net incomeExplanation / Answer
a.
b.
c.
d. Without an income-sharing agreement, each member will be credited with an equal proportion of the total earnings, or one-third each. Separate contributions will be acknowledged in the income-sharing formula.
Schedule of Division of Income WLKT Partners Madison Sanders Observer Newspaper, LLC Total Salary allowance 0 194300 0 194300 Interest allowance 50250 12750 30000 93000 Remaining income (4:3:3) 113080 84810 84810 282700 Net income 163330 291860 114810 570000Related Questions
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