Al, Bob and Cam form an equal partnership as a limited liability company, ABC, LLC, where they are all entitled to one-third of all income and loss from the operations of the business. The business had the following transactions in the first year:

Operating ItemSeparately Stated Item

Revenues $1,650,000___________

Gain on Sale of Land$52,000 ___________

Interest Income$8,000___________

Returns$50,000 ___________

Employee Salaries$150,000___________

Partner Salary (Bob)$100,000___________

Cost of Goods Sold$800,000___________

Rent$100,000___________

MACRS Depreciation$45,000___________

Section 179 Deduction$60,000___________

Interest Expense$15,000___________

Contribution to United Way$5,000___________

Please identify each of the above transactions as either (i) a transaction affecting the company's ordinary business income (loss), or (ii) a separately stated item. The gain on the sale of the land sold for $112,000 that had a basis of $60,000. The land was a capital asset and it was contributed by Al in an IRC 721 transaction at the beginning of the year when the FMV was $100,000 after Al had held the land as a capital asset for 5 years. The contribution to the United Way is a cash charitable donation to a 501(c)(3) public charity. Once you have categorized each of the transactions above, please use this information to complete pages 1 and 4 to a Form 1065 partnership tax return as well as Schedule K-1 (Part Ia and III only) for just Al and Bob.