partnership tax return question 275107

Ryan Ross (111 11 1111), Oscar Oleander (222 22 2222), Clark Carey (333 33 3333), and Kim Kardigan (444 44 4444) are equal members in ROCK the ages, LLC. ROCK serves as agents and managers for prominent musicians in the Los Angeles area. The LLC’s Federal ID number is 55 5555555. It uses the cash basis and the calendar year and began operations on January 1, 2000. Its current address is 6102 Wilshire Boulevard, Suite 2100, Los Angeles, CA 90036. ROCK was the force behind such music icons as Rhiannon and Ulster and has had a very profitable year. The following information was taken from the LLC’s income statement for the current year: Revenues: Fees and commissions $4,800,000 Taxable interest income from bank deposits 1,600 Tax exempt interest 3,200 Gains and losses on stock sales 4,000 Total revenues $4,808,800 Expenses: Advertising and public relations $ 420,000 Charitable contributions 8,000 Section 179 expense 20,000 Employee salaries 1,200,000 Guaranteed payment, Ryan Ross, office manager 600,000 Guaranteed payment, other members 900,000 Entertainment, subject to 50% disallowance 48,000 Travel 120,000 Legal and accounting fees 108,000 Office rentals paid 86,000 …