This problem is for the $2022$ tax year Case study for Ryan Ross

If a company has revenues of:

Fees and commissions $$4,800,000$

Taxable interest income from bank deposits $$1,600$

Tax $-$exempt interest $$3,200$

Net gain on stock sales $$4,000$

Total Revenues $$4,808,800$

Expenses

Advertising and Public relations $$380,000$

Charitable contributions $$28,000$

$179$ expense $$20,000$

Employee salaries and wages $$1,000,000$

Guaranteed payment $($services$),$ Ryan Ross, office manager $$800,000$

Guaranteed payment $($services$)$ other members $$600,000$

Business meals, subject to $50\%$ disallowance $$200,000$

Business restaurant meals and travel $(100\%$ deductible $$320,000$

Legal and accounting fees $$132,000$

Office rental paid $ $80,000$

Interest expense on operating line of credit $$10,000$

Insurance premiums $$52,000$

Office expenses $$200,000$

Payroll taxes $$92,000$

Utilities $$54,800$

Total expenses $$3,968,800$

Recently, Rock has taken advantage of bonus deprecation and $179$ deductions and fully remodeled the premises and upgraded its leasehold improvements. This year, Rock wrapped up its remodel with the purchase of $$20,000$ of office furniture for which it will claim a $179$ deduction $($For simplicity, assume that Rock uses the same cost recovery methods for both tax and financial purposes.$)$ There is no depreciation adjustment for alternative minimum tax purposes.

ROCK invest much of its excess cash non$-$dividend paying growth stock and tax exempt securities$.$ During the year the LLC sold two securities$.$ On June $15,2022,$ Rock purchased $1,000$ shares of Tech, inc stock for $$100,000$; it sold those shares on December $15,2022,$ for $$80,000.$ On March $15,2021,$ ROCK purchase $2000$ shared of BioLabs, Inc., for $$136,00$; it sold those shares for $$160,000$ on December $15,2022.$ There transactions were rereported to the IRS of Forms $1099-$B; Rock$$s basis in these shares was reported $.$

Net income per books is $$840,000.$ On January $1,2022,$ the member tax basis capital accounts equaled $$200,000$ each. No additional capital contributions were made in $2022.$ In addition to their guaranteed payments each member withdrew $$250,000$ cash during the year. All contributions and distributions have been in cash, so the LLC has no net unrecognized $704($c$)$ gain or loss. The LLC$$s balance sheet as of December $31,2022,$ is as follows:

Cash $$444,000$ $$\_\_\_\_\_\_\_\_\_$

Marketable securities $$120,000$ $$120,000$

Leasehold improvements, furniture, and equipment $$436,000$ $$300,000$

Accumulated deprecation $$(960,000)(980,000)$

Total Assets $$1,000,000$ $

Operating line of credit $$200,000$ $$160,000$

Capital, Ross $$200,000$ $

Capital Omega $$200,000$ $

Capital, Kardigan $$200,000$ $

Total liabilities and capital $$1,000,000$

The firms activities do not constitute $$qualified production activities for purposes of the $199$ deduction is a business$-$related expense.$)$ The LLC$$s UBIA $($unadjusted basis immediately after acquisition$)$ equals the total original cost of all leasehold improvements, or $$980,000.$

All debts is shared equally by the members. Each member has personally guaranteed the debt of the LLC$.$ All members are active in LLC operations. The business code for the entity is $711410.$

Complete the $2022$ Form $1065$ for Rock the Ages LLC with appropriate forms and schedules. Prepare Schedule K$-1$ for Ryan Ross, Schedule M$-2,$ Form $4562,$ Federal statements, Schedule K$-1,$ Statement A$-$QBI pass$-$through Entity Reporting, QBI Statement Information.