Emily Jackson (Social Security number 765-12-4326) and James Stewart (Social Security number 466-74-9932) are partners in a partnership that owns and operates a barber shop. The partnership's first year of operation is 2015. Emily and James divide income and expenses equally. The partnership name is J&S Barbers, it is located at 1023 Broadway, New York, NY 10004, and its Federal ID number is 95-6767676. The 2015 financial statements for the partnership are presented below.

J&S Barbers Income Statement for the Year Ending December 31, 2015
Gross income from operations			$371,600
Deductions:
Salaries to employees			94,000
Payroll taxes			10,000
Supplies			9,000
Rent			45,000
Depreciation			5,100
Short-term capital loss			2,000
Charitable contributions			500
Net income			$206,000
Partners' withdrawals (each partner)			$80,000
J&S Barbers Balance Sheet as of December 31, 2015
Assets:
Cash			$100,850
Accounts receivable			10,000
Equipment	$32,000
Accum. depreciation	(5,100)		26,900
			$137,750
Liabilities and Capital:
Accounts payable			$29,750
Notes payable			22,000
Partners' capital ($20,000 contributed by each partner)			86,000
			$137,750

Emily lives at 456 E. 70th Street, New York, NY 10006, and James lives at 436 E. 63rd Street, New York, NY 10012.

Required:

Complete J&S Barbers' Form 1065 and Emily and James' Schedule K-1. Do not fill in Schedule D for the capital loss, Form 4562 for depreciation, or Schedule B-1 related to ownership of the partnership. Make realistic assumptions about any missing data. If an amount box does not require an entry or the answer is zero, enter "0". If required, round your answers to nearest dollar.

If required, enter a "loss" as a negative number on the tax form. Do not enter deductions as negative numbers.