Barbara Barbie Roberts and Ken Carson started a personal shopping company, Barbies Closet. It operates on a calendar year end. It began business on January 1, 2021. Barbara needs you to do the following:

• Prepare the 2021 Partnership Tax Return (Be sure to attach any schedules required.) SC return is not required.
  • Barbies Closet o Fed ID # 57-5555555
  • o Address: 1000 Mattel Blvd Charleston, SC 29406
  • o Cash basis of accounting is used
  • o Capital and Profit/Loss Ownership Barbara Roberts 99%, Ken Carson 1%
  • o Barbara contributed $29,700 to the partnership at formation and took a distribution of $17,500 on December 31st. Ken contributed 300 to the partnership at formation and did not take a distribution.
  • Barbara Roberts o Social Security #: 555-55-5550
  • o Address: 111 Malibu Blvd. Charleston, SC 29406
  • Ken Carson o Social Security #: 555-55-5551
  • o Address: 112 Malibu Blvd. Charleston, SC 29406

Income:

Service Revenue 250,000 Dividend Income 1,000 * Interest Income 200 Tax Exempt Interest 100 Total Income 251,300 Expenses: Advertising Expense 2,500 Charitable Contributions 500 Guaranteed Payments - Barbie 90,000 Depreciation Expense 20,000 ** Interest Expense 1,500 Insurance Expense 2,500 Office Expense 500 Professional Services 500 Meals and Entertainment 500 Supplies Expense 4,000 Payroll Taxes - Other 5,000 Rent Expense 24,000 Salaries and Wages 60,000 Utilities 4,000 Total Expenses 215,500 Net Income 35,800 * Dividends were received from a less than 20% owned corporation. ** Depreciation for tax purposes is 25,000. Form 4562 not required. Distributions from Barbie's Closet = 17,500

Barbie's Closet Balance Sheet December 31, 2021 Assets Liabilities and Equity

• Assets:
  • Cash: $13,100
  • Supplies: $200
  • Investments: $10,000
  • Property Plant and Equipment: $100,000
  • Accumulated Depreciation: -$20,000
• Liabilities and Equity:
  • Long-Term Liabilities: $55,000
  • Owner's Capital - Barbara: $47,642
  • Owner's Capital - Ken: $658
  • Total Liabilities and Equity: $103,300

I need help filling out Schedule L of 1065 Partnership tax return. I put 10,000 on line 8 of schedule L, but was advised that it was incorrect.