Form 1065 Practice Tax Return Facts in 2018: ABC LLP, a limited liability partnership, EIN-74-1234567 Date Business Started 1/1/2000 Business Activity: retail sales; Product: Family Clothing; Business code: 448140. The partnership is a cash basis business Total Assets $3,050,000 Gross Receipts $1,000,000 Cost of Goods Sold $400,000 (assume no purchases are $400,000) ABC LLP uses FIFO method for determining the cost of goods sold and the cash method for all other income and expenses. Guaranteed payment for services in the amount of $200,000 Jones. Bee is also the Tax Matters partner Salaries and wages paid to employees was $50,000 Office Rent paid for home office was $10,000 Supplies expense totaled $40,000 Partner information is as Partner beginning and ending inventory and paid to Bee was follows Address 124 Oak Dr Capital Profit Loss Residency 40% SSN 222-22-2222 Bee Jones 40% 40% TX 125 Oak D John Smith 40% 40% 40% TX 333-33-3333 20% 20% Julie Smart 20% TX 444-44-4444 126 Oak Dr All partners materially participate in the day-to-day partnership operations All partners The partner's beginning Capital Balances at 1/1/2018 account balances are as follows use their tax basis as their capital Capital Balance $1,100,000 $1,100,000 S 550,000 Partner Bee Jones John Smith Julie Smart 12/31/2018 Assets 1/1/2018 Cash Land 250,000 $550,000 $2,500,000 $2,500,000 $2,750,000 $3,050,000 Total assets Liabilities and Partner's Capital Account Balances Partner's Capital Account Balances Total liabilities and shareholders' equity $2,750,000 $2,750,000 $3,050,000 $3,050,000 The partnership has engaged you to prepare the 2018 Form 1065. Include the Schedules K-1 and the Form 1125-A, Cost of Goods Sold. Assume the partnership has no debts. In answering questions on the tax return, you may make assumptions if the above facts Form 1065 Practice Tax Return Facts in 2018: ABC LLP, a limited liability partnership, EIN-74-1234567 Date Business Started 1/1/2000 Business Activity: retail sales; Product: Family Clothing; Business code: 448140. The partnership is a cash basis business Total Assets $3,050,000 Gross Receipts $1,000,000 Cost of Goods Sold $400,000 (assume no purchases are $400,000) ABC LLP uses FIFO method for determining the cost of goods sold and the cash method for all other income and expenses. Guaranteed payment for services in the amount of $200,000 Jones. Bee is also the Tax Matters partner Salaries and wages paid to employees was $50,000 Office Rent paid for home office was $10,000 Supplies expense totaled $40,000 Partner information is as Partner beginning and ending inventory and paid to Bee was follows Address 124 Oak Dr Capital Profit Loss Residency 40% SSN 222-22-2222 Bee Jones 40% 40% TX 125 Oak D John Smith 40% 40% 40% TX 333-33-3333 20% 20% Julie Smart 20% TX 444-44-4444 126 Oak Dr All partners materially participate in the day-to-day partnership operations All partners The partner's beginning Capital Balances at 1/1/2018 account balances are as follows use their tax basis as their capital Capital Balance $1,100,000 $1,100,000 S 550,000 Partner Bee Jones John Smith Julie Smart 12/31/2018 Assets 1/1/2018 Cash Land 250,000 $550,000 $2,500,000 $2,500,000 $2,750,000 $3,050,000 Total assets Liabilities and Partner's Capital Account Balances Partner's Capital Account Balances Total liabilities and shareholders' equity $2,750,000 $2,750,000 $3,050,000 $3,050,000 The partnership has engaged you to prepare the 2018 Form 1065. Include the Schedules K-1 and the Form 1125-A, Cost of Goods Sold. Assume the partnership has no debts. In answering questions on the tax return, you may make assumptions if the above facts