Kim owns one-third of Bright Line, LLC. At the start of the year, her basis is $10,000. During the year, Bright Line needs some legal work done and Kim, a lawyer, agrees to do the work in exchange for a $22,000 guaranteed payment this year.
During 2024, 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 report for 2024?
A. $14,000
B. $12,400
C. $19,000
D. ($3,000)