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Note: This problem is for the $2021$ tax year.

Ryan Ross $(111-11-1112),$ Oscar Omega $(222-22-2223),$ Clark Carey $(333-33-3334),$ and Kim Kardigan $(444-44-4445)$ are equal activ members in ROCK the Ages LLC$.$ ROCK serves as agent and manager for prominent musicians in the Los Angeles area. The LLC$\text{'}$s Fedel number is $55-5555556.$ It uses the cash basis and the calendar year and began operations on January $1,2009.$ Its current address is Wilshire Boulevard, Suite $2100,$ Los Angeles, CA $90036.$ ROCK was the force behind such music icons as Adrianna Venti, Drake Malone, Elena Gomez, Tyler Quick, Queen Bey, and Bruno Mercury and has had a very profitable year. The following information was taken fron LLC$\text{'}$s income statement for the current year.

Revenues

Fees and commissions

Taxable interest income from bank deposits

Tax$-$exempt interest

Net gain on stock sales

Total revenues

Expenses

Advertising and public relations

Charitable contributions

$179$ expense

Employee salaries and wages

Guaranteed payment $($services$),$ Ryan Ross, office manager

Guaranteed payment $($services$),$ other members

Business meals, subject to $50\%$ disallowance

Business restaurant meals and travel $(100\%$ deductible$)$

Legal and accounting fees

Office rentals paid

Interest expense on operating line of credit

Insurance premiums

Office expense

Payroll taxes

Utilities

$\backslash$table$[[$$$4,800,000$

Instructions

ROCK invests much of its excess cash in non$-$dividend$-$paying growth stocks and tax$-$exempt securities$.$ During the year, the LLC sold two securities$.$ On June $15,2021,$ ROCK purchased $1,000$ shares of Tech, Inc., stock for $$100,000$; it sold those shares on December $15,2021,$ for $$80,000.$ On March $15,2020,$ ROCK purchased $2,000$ shares of BioLabs, Inc., stock for $$136,000$; it sold those shares for $$160,000$ on December $15,2021.$ These transactions were reported to the IRS on Forms $1099-$B; ROCK's basis in these shares was reported.

Net income per books is $$840,000.$ On January $1,2021,$ the members' tax basis capital accounts equaled $$200,000$ each. No additional capital contributions were made in $2021.$ In addition to their guaranteed payments, each member withdrew $$250,000$ cash during the year. All contributions and distributions have been in cash, so the LLC has no net unrecognized $704($c$)$ gain or loss. The LLC$\text{'}$s balance sheet as of December $31,2021,$ is as follows.

$\backslash$table$[[,$Beginning,Ending$],[$Cash$,$$$444,000,$$$,??],[$Tax$-$exempt securities$,120,000,120,000],[$Marketable securities$,436,000,300,000],[$Leasehold improvements, furniture, and equipment,$960,000,980,000],[$Accumulated depreciation,$(960,000),(980,000)$

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