form 1065, 2 Schedule k-1 (1065s), Schedule B-1, and statement items

Please complete Queen Bee Plumbing's 2020 tax return based upon the facts presented below. If required information is missing, use reasonable assumptions to fill in the gaps. Ignore all AMT calculations and AMT related reporting items. Taylor Queen and Richard Bee have been life-long friends. After nearly a decade of working for that same company, Taylor and Richard decided to venture out on their own and form their own plumbing company called Queen Bee Plumbing. They formed Queen Bee as a limited liability company (LLC). Taylor and Richard each own 50% of the company Information relating to Queen Bee and its owners is as follows: Name of Company Queen Bee Plumbing, LLC Address: 1456 East Buena Vista Blvd. Los Angeles, CA 90001 (has not changed since inception) Company formed and started: January 1, 2012 Accounting Method: Accrual Tax-year end: December 31 Employer Identification Number: 34-7652143 Members' Information: Taylor Queen Richard Bee 1515 West Bloomington Street 19 East Violet Circle Members' Information: Taylor Queen Richard Bee 1515 West Bloomington Street 19 East Violet Circle Los Angeles, CA 90001 Los Angeles, CA 90001 SSN-585-31-4060 SSN: 585-31-6060 Phone: 555-234-8745 Phone: 555-213-0989 Profit/Loss/Capital membership interest is 50%. Profit/Loss/Capital membership interest is 50%. Other information: For any 'yes' or 'no' questions on Schedule B, assume the answer is 'no' unless explicitly stated in the facts below. Queen Bee is a domestic limited liability company. Taylor and Richard are U.S. citizens and are not related, each owning 50% of the LLC Both Taylor and Richard are managing members. All of Queen Bee's activities constitute a qualified trade or business, and the salaries and wages expense from the income statement is the same as W-2 wages paid by Queen Bee in 2020. The total unadjusted basis for all assets placed in service for the prior 10 years matches the cost of all assets reported on the balance sheet. Taylor is the Partnership Representative. Both Taylor and Richard are active in the business and work full-time for Queen Bee, Queen Bee does not maintain any inventory. The debt owed to First National Bank is a non-recourse obligation and neither Taylor nor Richard have guaranteed its repayment (see balance sheet below). This debt is not directly tied to any specific asset but is rather a debt secured against all of the assets of the company (ie qualified nonrecourse debt). During the year, Taylor and Richard each contributed $20,000 to the capital of Queen Bee. During the year, Taylor and Richard each received a $60,000 distribution from Queen Bee. MACRS tax depreciation calculated on the form 4562 (not required for completion) is $95,000. Financial Statements: Queen Bee Plumbing, LLC Income Statement For the year ending December 31, 2020 Income: Service Revenue Consulting Revenue Interest Income-First National Bank Municipal Bond Interest Income Total Income: Expenses: Advertising Automobile Expense $343,500 785,000 1,250 2,500 $1,132,250 $15,000 25.000 Automobile Expense Depreciation Guaranteed payment-Bee Guaranteed payment-Queen Insurance Expense Interest Expense Meals Office Supplies Payroll Taxes Penalties & Fines Plumbing supplies Property Taxes Rent Salaries and Wages Telephone Travel (no entertainment or meals) Utilities Total Expenses: 25,000 85,000 40,000 60,000 75,000 43,000 14,000 3,500 45,000 2,500 15,000 50,000 35,000 300,000 16,000 4,250 15,000 $843,250 Net Income: $289,000 Queen Bee Plumbing, LLC Balance Sheet December 31, 2020 12/31/2019 12/31/2020 Assets: Cash Accounts Receivable Supplies Tax-exempt Securities Building Less: Acc. Depreciation Equipment Less: Acc. Depreciation Land Total Assets: 30,000 9,750 5,250 100,000 400,000 (55,000) 250,000 (150,000) 100,000 690,000 45,000 6,500 7,500 150,000 500,000 (65,000) 325,000 (225,000) 100,000 844,000 Liabilities and Capital: Accounts Payable Long Term Note Payable-First National Bank Capital Account-TQ Capital Account-RB Total Liabilities and Capital: 70,000 280,000 170,000 170,000 690,000 45,000 250,000 274,500 274,500 844,000