Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Eileen and Sara began the Bean Buzz coffee shop in 2016 as equal partners. In 2018, their financial records included the following: $113,582 in gross

image text in transcribed
Eileen and Sara began the Bean Buzz coffee shop in 2016 as equal partners. In 2018, their financial records included the following: $113,582 in gross receipts. $30,467 in purchases $3,042 in beginning inventory $2,788 in inventory at the end of 2018 $21,594 in salaries for the baristas. $6,429 in general supplies. . $846 for business insurance. $3,599 for a new office desk purchased on July 1, 2018 for which they did not elect bonus depreciation or a Section 179 deduction. Eileen and Sara did not take any distributions for 2018. However, they each have a guaranteed payment as a result of the capital they contributed. Eileen receives $10,000 and Sara receives $12,000. What is the amount included in Box 14 of Eileen's Schedule K-17 What is the amount included in Box 14 of Sara's Schedule K-1 O Schedule K-1, box 14 Elleen-$15,739, Sara $15,739 O Schedule K-1, box 14- Eileen $26,724, Sara-$26,723 O Schedule K-1, box 14-Eleen-$25,739, Sara- $27,739 O Schedule K-1, box 14- Eileen-$30,634, Sara-$30,633

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

IS Audit And Control For Accountants

Authors: Mr Amir Manzoor

1st Edition

1493665006, 978-1493665006

More Books

Students also viewed these Accounting questions

Question

Identify the eight major steps in planning audits.

Answered: 1 week ago