De January 1, 2009, two enterprising men in the community, Jake Jebusen and Sam "Swiss" Stillwell, anticipated a boom in the local construction industry. They decided to sell their small businesses and pool their resources as general partners in establishing a retail outlet for lumber and other building materials, including a complete line of specialty hardware for prefab tree houses. Their general partnership was officially formed under the name of Aurora Building Supply and soon became a thriving business. ABS is located at 2174 Progress Ave., Aurora, Illinois 60503. ABS's Employer Identification Number is 91-3697984. ABS's business activity is retail construction. Its business activity code is 444190. Both general partners are active in the management of ABS. Jake Johnson's Social Security number is 500-23-4976. His address is 31 W. Oak Drive, Aurora, Illinois 60503. Sam Stillwell's Social Security number is 374-68-3842. His address is 947 E. Linder Street, Aurora, Illinois 60503. His phone number is 779-555-5555. Sam Stillwell is designated in the partnership agreement as the Partnership Representative for tax purposes. ABS uses the accrual method of accounting and has a calendar year-end. The following is ABS's 2021 income statement: For ABS Income Statement year ending December 31, 2021 Sales (on account) Less: Sales returns Cost of goods sold Gross profit on sales $410,000 -20.000 $390,000 -150,000 $240,000 Operating expenses Salaries and wages (including partners' guaranteed payments) $79,000 Property taxes 1,600 Payroll taxes 2,450 Depreciation and 179 expense 40.062 Advertising 2,000 Bad debt expense 3,850 Office expense 1,800 Repairs Miscellaneous 2,150 450 Fire insurance 4.850 138,212 Net operating income $101,788 Other income Gain on sale of securities $1,350 Gain on sale of truck 16,399 Dividend income 695 Interest income Other deductions 4.200 22,704 $124,492 Interest on mortgage $5,400 Interest on notes payable 2250 Cash charitable contributions 5,000 Life insurance premiums 3,000 Loss on sale of forklifts 466 Net income 16,116 $108.376 ACC 410 Tax Return Project 2 Spring 201221