For 2020, complete Aspen Ridge limited partnership

Form 1065, Schedule K, Schedules M-1 and M-2, Mark Sullivans Schedule K-1.

Form 4562 for depreciation and Schedule D for capital gains.

The Aspen Ridge limited partnership was formed on April 1, 2010, by Mark Sullivan, its general partner, and two other limited partners when they each contributed an equal amount of cash to start the new enterprise. Aspen Ridge is an outdoor equipment retailer selling camping, fishing, skiing, and other outdoor gear to the general public. Mark has a 33.33 percent profits, loss, and capital interest and the limited partners hold the remaining 66.66 percent of the profits, loss, and capital interests. Their profits, loss, and capital interests have remained unchanged since the partnership was formed. Mark is actively involved in managing the business while the limited partners are only investors, and Mark receives an annual guaranteed distribution of $35,000 for his services managing the business.

Aspen Ridge Income Statement For year ending December 31, 2020
Sales	$ 965,500
Sales returns and allowances	(9,700)
Cost of goods sold	(538,200)
Gross profit from operations	$ 417,600
Other income:
Interest from money market account	$ 3,200
Gain from sale of photograph	34,000
Gross income	$ 454,800
Expenses:
Employee wages	$ 95,400
Interest on accounts payable	2,700
Payroll and property taxes	10,800
Supplies	4,300
Rent on retail building	18,500
Depreciation on furniture and fixtures	4,550
Advertising	8,300
Guaranteed payments to Mark Sullivan	35,000
Utilities	6,400
Accounting and legal services	4,400
Business meals	2,240
Cash charitable contribution to the Sierra Club	3,300
Miscellaneous expenses	5,750
Total expenses	(201,640)
Net income for books	$ 253,160

1. Aspen Ridge has total assets of $1,725,800 and total liabilities of $540,300 at the beginning of the year, and total assets of $2,065,300 and total liabilities of $806,640 at the end of the year.
2. Partnership liabilities consist of accounts payable, and Mark, as general partner, is legally responsible for paying these liabilities if the partnership does not.
3. Two years ago, Aspen Ridge purchased an original Ansel Adams outdoor landscape photograph with the intent to display it permanently in the retail store. This year, however, the photograph was sold to a local ski lodge where it now hangs on the wall. The $34,000 recognized gain from the sale is reflected in the income statement above.
4. For tax purposes, Aspen Ridge has consistently elected out of bonus depreciation and has elected instead under 179 to expense any furniture or fixtures placed in service every year since it was formed. As a result, it does not have a tax basis in any of its depreciable assets. This year, Aspen Ridge expensed $17,300 of signs and display cases for tax purposes.
5. On November 20, Aspen Ridge distributed $180,000 ($60,000 per partner) to the partners.
6. Miscellaneous expenses reported on the income statement include a $900 fine for violating a local signage ordinance.
7. All three partners capital accounts each had an opening balance of $395,166.33.
8. Assume that Aspen Ridge did not make any payments that would require it to file Form(s) 1099.