Forms to Complete:

• Form 1065 (not Schedule B)
• Schedule D and Forms 8949
• Form1125-A
• ScheduleK-1(Ms.Maine)

And one Excel spreadsheed need to be fill out.

Form 1065 new TAX TRIAL BALANCE- Form 1065 Tax Return Research Associates Gross receipts Cost of goods sold Dividend income Interest income Long-term capital loss Guaranteed Payments Salaries & wages Rents Property taxes Utilities Depreciation Charitable contributions Investment interest expense Book for Sch. M-1 Financials. Adjustments $1,000,000 (250,000) 50,000 11,000 (35,000) 776,000 0 (75,000) (345,000) (55,000) (10,000) (20,000) (100,000) (20,000) (12,000) (637,000) $139,000 Book for Tax Adjustment Return s (Sch. K) $1,000,000 ($250,000) $50,000 $11,000 ($35,000) 776,000 0 0 $0 Guaranteed Payments Page 1 (75,000) (345,000) (55,000) (10,000) (20,000) (100,000) (20,000) (12,000) (637,000) $139,000 $75,000 0 $0 Ordinary Inc. (Page 1) 0 0 $0 Form Form 1065 Form 1065 Form 1065 Form 1065 Form 1065 Form 1065 Form 1065 Form 1065 Form 1065 Form 1065 Form 1065 Form 1065 Form 1065 Form 1065 Form 1065 Form 1065 Form 1065 Form 1125-A Sch. K-1 Sch. K-1 Sch. K-1 Sch. K-1 Sch. K-1 Sch. K-1 Sch. K-1 Sch. K-1 Sch. K-1 Sch. K-1 Sch. K-1 Sch. K-1 2015 Return Page Line 1 3 1 21 Sch K 4 Sch K 5 Sch K 6a Sch K 6b Sch K 8 Sch K 9a Sch K 13a Sch K 13b Sch K 18a Sch K 18c Sch K 19a 5 1 5 14(d) 5 21(d) Sch M-1 9 1 2 part III 1 part III 4 part III 6a part III 6b part III 8 part III 9a part III 13A part III 13H part III 13U part III 13V part III 14A part III 20A Entry 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 - Check figure $ 3,911,700 ACCT 346 Tax Return Information- Part 2 (Partnership) Summer 2016 Tax Return Case Study1 Part 2 -- Form 1065 During the year ended 12/31/2015, Research Associates: Paid partner draws of $198,000 to Ms. Maine and $22,000 to Dr. Rue. Made guaranteed payments of $50,000 to Ms. Maine and $25,000 to Dr. Rue. Received exempt municipal interest income of $5,000. Received dividend income of $30,000 from Marvelous Cures, Inc. (in which Research has a 30% ownership interest) and $20,000 from corporations in which Research has a 20% ownership interest. All dividends are qualified dividends. Paid no salaries/wages attributable to inventories. Calculated cost recovery using MACRS of $90,000. Also note that the partners had $396,000 (Ms. Maine) and $44,000 (Dr. Rue) in their capital accounts at the beginning of the year. The partnership's balance sheets and income statement are presented in Exhibits 3 and 4, respectively. Exhibit 3 Research Associates Balance Sheet Years ended December 31, 2014 and 2015 Balances as of ASSETS Cash Inventory Depreciable assets (net) TOTAL ASSETS LIABILITIES & RETAINED EARNINGS Accounts payable (inventory) Notes payable Partners' capital TOTAL LIABILITIES & PARTNERS' CAPITAL 1 12/31/2014 $25,000 $150,000 $300,000 $475,000 12/31/2015 $71,000 $100,000 $200,000 $371,000 $10,000 $25,000 $440,000 $12,000 $0 $359,000 $475,000 $371,000 ACCT 346 Tax Return Information- Part 2 (Partnership) Summer 2016 Exhibit 4 Research Associates Income Statement Year ended December 31, 2015 Gross receipts Cost-of-Goods Sold Dividend Income Interest Income Capital losses $1,000,000 (250,000) 50,000 11,000 (35,000) $776,000 Salaries and wages Guaranteed Payments Rents Property taxes Utilities Depreciation Charitable contributions Investment interest expense ($345,000) (75,000) (55,000) (10,000) (20,000) (100,000) (20,000) (12,000) ($637,000) $139,000 Property Transactions Item Purchase** Price - Date Sale Price - Date 100 shares of CYA stock $3,000 - 1/1/2000 $7,000 - 1/15/2015 2,000 shares of ABZ stock $100,000 - 6/30/2000 $54,000 - 6/29/2015 City of LA Bonds $25,000 - 10/15/2014 $22,000 - 2/14/2015 2 $125,000 - 5/30/2014 $135,000 - 10/31/2015 **The taxpayer received 1099s for these transactions, but the basis was not reported to the IRS. 2 ACCT 346 Tax Return Information- Part 2 (Partnership) Section 199 Information Domestic Production Gross Receipts Summer 2016 $317,463 Allocable Cost of Goods Sold $63,493 Deductions Allocable to DPGR $142,858 W-2 Wages Related to QPAI $40,000 Required Use the information presented to prepare the assigned pages of the Form 1065 and Schedule D. Also prepare one Schedule K-1 (Form 1065) for Ms. Maine. (You will not be filing a complete return.) Use PDF forms from the IRS web site. 3