Review the tax return for the business Form S and the K for Morty. Jerry decides that no distributions will
be made, and since he has of the vote, it appears that he has majority vote. For this question, assume that
the operating agreement says that distributions will be voted on based on Membership Ownership percentage.
Which of the following is true.
Morty will be pay income tax on his individual return for $ of income.
$ Morty's effective tax rate
Morty will be allocated $ of income that will be taxed on his individual tax
return $ Morty's effective tax rate
The business will distribute $ of cash to Morty.
The business will pay income tax on $ of income.
