Form $1065.($Obj$.5)$ On January $3,2022,$ Ellen Elvers $($SSN $299-00-1945)$ and Jack Ford form Elvers and Ford general partnership $($EIN $70-0960341).$ Elvers and Ford operate a business that sells various types of merchandise $($business code $452000)$ at $1425$ Tyron Street, Charlotte, North Carolina $28201.$ To form the partnership, Ellen contributes $$24,000$; Jack contributes $$16,000.$ The agreement provides that Ellen will participate in the partnership on a full$-$time basis and Jack on a part$-$time basis. The agreement further provides that Ellen and Jack will receive guaranteed annual payments of $$34,000$ and $$18,000,$ respectively. The remaining profits go $60\%$ to Ellen and $40\%$ to Jack.

Prepare Form $1065$ and Schedule K$-1($Form $1065)$ for Ellen Elvers. Ellen is the designated Partnership Representative. Her address is $1609$ Amber Way, Charlotte, NC $28201.$ Ellen signs the partnership return on March $10,2023.$ The partnership tax return will be filed with the IRS Center in Kansas City, Missouri. Although the partnership is not required to complete Schedules L$,$ M$-1,$ M$-2,$ or Item F on Form $1065($page $1),$ complete these items for Elvers and Ford partnership. Also complete Schedule B$-1,$ But not Schedule B$-2.$ Complete the required pages on Schedule K$-2$ and Schedule K$-3.$

The trial balance that follows was prepared as of December $31$ after all necessary adjustments. Merchandise inventory is an exception. Total purchases of inventory during the year were $$162,700.$ The ending balance in inventory was $$22,000.$ Also, the partners' capital accounts do not reflect the partners' distributive shares of income and loss for the year. The accounts for the partners' "Drawings" represent withdrawals in addition to their respective guaranteed payments. Net income per books $($Schedule M$-1,$ line $1)$ is $$23,990.$

The partnership uses the accrual method of accounting. Worthless accounts of $$800$ were written off directly to bad debt expense during the year. The equipment was purchased used. The partnership calculates depreciation using $($accelerated$)$ MACRS. The equipment was the only personal property purchased during $2022.$ The partnership does not elect Section $179.$ Book depreciation is reported on the trial balance. Book depreciation is based on a different method than MACRS. Charitable contributions are subject to the $50\%$ limitation$.$ On October $3,2022,50$ shares of common stock in ZMT Corporation were sold for $$2,900.$ The stock was purchased for $$1,700$ on March $29,2022.$ For purposes of preparing Form

$1065,$ assume that Form $4562$ and Schedule D have been properly prepared.

ELVERS AND FORD

Trial Balance

December $31,2022$

Account

Cash

Accounts and notes receivable

Equipment $($purchased January $4,2022)$

Accumulated depreciation$-$equipment

Prepaid assets

Long$-$term notes payable $($to banks$)$

Accounts payable

Other accrued current liabilities

Ellen Elvers, Capital

Ellen Elvers, Drawing

Jack Ford, Capital

Jack Ford, Drawing

Sales

Sales returns and allowances

Gain on sale of stock

Purchases

Interest expense $($business related$)$

Partners' salaries

Office and store salaries

Rent expense

Office expense

Depreciation expense

Property taxes on business property

Payroll taxes

Delivery expense

Bad debt expense

Store expenses

Advertising expense

Taxable interest income

Charitable contributions

$\backslash$table$[[$Debit$,],[$$$11,017,$Credit$],[17,550,],[28,000,],[,],[900,$$$5,000$