ACNT 1347

Form 1065 Practice Tax Return

Facts in 2016:

ABC LLP, a limited liability partnership, 123 Oak Dr Houston TX 77002

EIN-74-1111111

Date Business Started 1/1/2000

Business Activity, retail sales

Business Code 99999

The partnership is a cash basis business

Total Assets $5,000,000

Gross Receipts $1,000,000

Cost of Goods Sold $400,000 (assume no beginning and ending inventory and

purchases are $400,000)

ABC LLP uses the lower of cost or market method for valuing inventory and also

uses the FIFO method for determining the cost of goods sold

Guaranteed payment paid to Bee Jones, 40% partner, SSN-222-22-2222,was

$200,000

Salaries and wages paid to employees was $50,000

Office Rent paid for office was $10,000

Supplies expense totaled $40,000

The partnership manufacturers clothing.

Partner ownership (capital, profit and loss) is as follows:

Bee Jones40%

John Smith40%

Julie Smart20%

All partners materially participate in the partnership business.

The partnership has engaged you to prepare the 2016 Form 1065 (pages 1, 2 and 4).

Also, prepare the Schedule K-1 for Bee Jones, 40% partner.You will not be preparing

the Form 1125-A for Cost of Goods Sold.Assume the partnership has no debts.Bee

Jones had a beginning capital balance of $10,000.Be sure to sign the return as the

preparer.

Do not put your SSN # on the Form 1065.

ACNT 1347 Form 1065 Practice Tax Return Facts in 2016: ABC LLP, a limited liability partnership, 123 Oak Dr Houston TX 77002 EIN-74-1111111 Date Business Started 1/1/2000 Business Activity, retail sales Business Code 99999 The partnership is a cash basis business Total Assets $5,000,000 Gross Receipts $1,000,000 Cost of Goods Sold $400,000 (assume no beginning and ending inventory and purchases are $400,000) ABC LLP uses the lower of cost or market method for valuing inventory and also uses the FIFO method for determining the cost of goods sold Guaranteed payment paid to Bee Jones, 40% partner, SSN-222-22-2222, was $200,000 Salaries and wages paid to employees was $50,000 Office Rent paid for office was $10,000 Supplies expense totaled $40,000 The partnership manufacturers clothing. Partner ownership (capital, profit and loss) is as follows: o Bee Jones 40% o John Smith 40% o Julie Smart 20% All partners materially participate in the partnership business. The partnership has engaged you to prepare the 2016 Form 1065 (pages 1, 2 and 4). Also, prepare the Schedule K-1 for Bee Jones, 40% partner. You will not be preparing the Form 1125-A for Cost of Goods Sold. Assume the partnership has no debts. Bee Jones had a beginning capital balance of $10,000. Be sure to sign the return as the preparer. Do not put your SSN # on the Form 1065