19. Form 1065. (Obj. 5) On January 3, 2022, Ellen Elvers (SSN 299-00-1945) and Jack Ford business that sells various types of merchandise (business code 452000) at 1425 Tyron Street, form Elvers and Ford general partnership (EIN 70-0960341). Elvers and Ford operate a contributes $16,000. The agreement provides that Ellen will participate in the partnership Charlotte, North Carolina 28201. To form the partnership, Ellen contributes $24,000; Jack on a full-time basis and Jack on a part-time basis. The agreement further provides that Ellen and Jack will receive guaranteed annual payments of $34,000 and $18,000, respectively. The remaining profits go 60% to Ellen and 40% to Jack. Prepare Form 1065 and Schedule K-1 (Form 1065) for Ellen Elvers. Ellen is the designated Partnership Representative. Her address is 1609 Amber Way, Charlotte, NC 28201. Ellen signs the partnership return on March 10, 2023. The partnership tax return will be filed with the IRS Center in Kansas City, Missouri. Although the partnership is not required to complete Schedules L, M-1, M-2, or Item F on Form 1065 (page 1), complete these items for Elvers and Ford partnership. Also complete Schedule B-1, But not Schedule B-2. Complete the required pages on Schedule K-2 and Schedule K-3. The trial balance that follows was prepared as of December 31 after all necessary adjustments. Merchandise inventory is an exception. Total purchases of inventory during the year were $162,700. The ending balance in inventory was $22,000. Also, the partners' capital accounts do not reflect the partners' distributive shares of income and loss for the for the partners' "Drawings" represent withdrawals in addition to their respective guaranteed payments. Net income per books (Schedule M-1, line 1) is $23,990. year. The accounts The partnership uses the accrual method of accounting. Worthless accounts of $800 were written off directly to bad debt expense during the year. The equipment was purchased used. The partnership calculates depreciation using (accelerated) MACRS. The equipment was the only personal property purchased during 2022. The partnership does not elect Section 179. Book depreciation is reported on the trial balance. Book depreciation is based on a different method than MACRS. Charitable contributions are subject to the 50% limitation. On October 3, 2022, 50 shares of common stock in ZMT Corporation were sold for $2,900. The stock was purchased for $1,700 on March 29, 2022. For purposes of preparing Form