Answered step by step
Verified Expert Solution
Question
1 Approved Answer
For the Maid 2 Help partnership return, how would the return change if they had started the business in 2021? O All the prior-year assets
For the Maid 2 Help partnership return, how would the return change if they had started the business in 2021?
O All the prior-year assets would need to be entered with whatever actual depreciation had been taken, because it is the second year Schedule L would have certain entries in the beginning-of-year column. No entries are required on Schedules K-1, other than entering the information about the partners. O The prior-year assets would not need to be entered since, for 2021, special depreciation was required for partnerships. Schedule L would have certain entries in the beginning-of-year column. On Schedule M-1, the special depreciation in 2021 was a temporary adjustment, which would require entries on the Schedule M-1. O In the second year, the capital account balances at the beginning of the year will need to be adjusted based on the net income from the prior year, along with any changes to the liability accounts. On the general information screen, the checkbox for initial return would not be checked. The depreciation expenses for the assets would be more because it is for the second year. Schedule L would have certain entries in the beginning-of-year column. On Schedules K-1 and Basis worksheets, beginning balances of the partners would be entered.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started