Question
Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $146,000, and Keon
Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $146,000, and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $75,400 and was appraised at $216,000. The land was also encumbered with a $75,400 nonrecourse mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of the first year, Blue Bell made a $10,600 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information:
Sales revenue | $ 524,000 |
---|---|
Cost of goods sold | 438,800 |
Operating expenses | 98,800 |
Long-term capital gains | 2,940 |
1231 gains | 600 |
Charitable contributions | 300 |
Municipal bond interest | 300 |
Salary paid as a guaranteed payment to Deanne (not included in expenses) | 3,000 |
c. Using the information generated in answering parts (a) and (b), prepare Blue Bell's page 1 and Schedule K to be included with its Form 1065 for its first year of operations, along with Schedule K-1 for Deanne.
Need to know were this onfo goes in the form
Caution: Include only trade or business income and expenses on lines 1 a through 22 below. See instructions for more information. Final K1 Amended K-1 OMB No. 1545-0123 Schedule K-1 2021 (Form 1065) Department of the Treasury For calendar year 2021, or tax year Internal Revenue Service beginning 2021 ending Partner's Share of Income, Deductions, Credits, etc. See back of form and separate instructions. Part I Information About the Partnership A Partnership's employer identification number B Partnership's name, address, city, state, and ZIP code Blue Bell Profit \begin{tabular}{l|l|l|l|l} Profit & & % & & \\ \hline Loss & % & % & \\ \hline Capital & & % & \\ \hline Check if decrease is due to sale or exchange of partnership interest \end{tabular} K Partner's share of liabilities: Check this box if Item K includes liablity amounts from lower tier partnerships. L Partner's Capital Account Analysis Beginning capital account Capital contributed during the year Current year net income (loss) Other increase (decrease) (attach explanation) Whihdrawals \& distributions Ending capital acoount M Did the partner contribute property with a built-in gain or loss? Yes No If "Yes," attach statement (see instructions) N Partner's Share of Net Unrecognized Section 704(c) Gain or (Loss) Beginning Ending For Paperwork Reduction Act Notice, see Instructions for Form 1065. 13 Other deductions A 14 22 23 50 21 Foreign taxes paid or accrued A Selfeems (loss) *See attached statement for additional information. For IRS Use Only More than one activity for passive activity purposes* More than one activity for at-risk purposes* THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM IT SELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. @ 2022 McGraw-Hill EducationStep by Step Solution
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