Bravo Partnership (the Partnership) was established on January 1, 2022, when David, Barry, Kyle, and Charles each contributed $10,000 to the Partnership in exchange for a 25 percent interest, each, in the Partnerships capital, profits, and losses. The Partnership is located in and operates exclusively in Virginia. The Partnerships trial balance, as of and for the year ended December 31, 2022, is shown below.

The Partnership maintains its books and records and prepares its financial statements on the basis of US GAAP.

In computing the Partnerships tax depreciation for 2022, the Partnership took Section 179 of $1,080,000 depreciation on its $1,250,000 of acquisitions during the year. The remaining acquisitions were depreciated on the DDB method over 10 years. So, total tax depreciation for 2022 was $1,114,000.

No accounts were written off during 2022 and there were not any recoveries during 2022. The Partnership established its $15,000 allowance based on 7.5% of accounts receivable. This expense is included in the Partnerships Selling, General, and administrative expenses.

During 2022, the Partnership paid a $5,000 fine to OSHA.

All of the Partnerships partners are residents of Virginia and all are active general partners.

Each partner received $75,000 guaranteed payments for services during 2022. These payments are included in the Partnerships Selling, General, and administrative expenses. Note that these payments are self-employment earnings.

Required

Reconcile the Partnerships net income per the trial balance to the Partnerships taxable income for the year 2022.

Complete Schedule K, Analysis of Net Income (Loss) per Return, Schedule L, and Schedule M-2 of federal form 1065 (2022 version).