Assignment 3 Pass Through Assignment To complete this assignment, read the information below and then complete the 2019 partnership tax return (form 1065) including the K-1s, and both individuals 2019 1040 by hand. The ScenarioCraft Beer Brewing Partnership

Revenues 690,000

Office Rent 30,000

COGS199,000

Salaries240,000

ST Gain on Sale of Stock 100,000

LT Loss on Sale of Stock 500,000

Contributions to Charities 62,000

Friends Dan and Lisa are each partners in the beer brewing partnership above.

oDan owns 3%o

Lisa owns 6%

Additional Information about Dan (not including partnership info)

oMarried, 1 child

oWages from job = $20,000

oWages from wifes job = $30,000

Additional Information about Lisa (not including partnership info)

oSingle, no children

oWages from job = 132,000

oSold stock held LT at a gain of 25,000

oPaid state taxes of 9,000

oPaid qualified mortgage interest of 10,000

1065 page 1

Line 1:

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Line 8:

Line 21:

Line 22:

1065, page 4 (Schedule K)

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Line 8:

Line 13a:

Line 13b:

Line 16b:

Line 18a:

Line 20b:

Dans Schedule K-1, Part III

Line 1:

Line 8:

Line 18a:

Lisas K-1

Line 1:

Line 13a:

Line 13k:

Line 20b:

Dans 1040

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Line 2b:

Line 7b:

Line 8b:

Line 9:

Line 10:

Line 11a:

Schedule 1,

Line 5:

Lisas 1040

Line 7b:

Line 8b:

Line 9:

Line 10:

Line 11b:

Schedule 1,

Line 5:

Other Questions

By how much does Dans AGI increase because of the partnership activities?

By how much does Lisas taxable income decrease because of the partnership activities?