Here is the problem. I've answered it all except I cannot find the answer for Section 199A Qualified Business Income (for the Federal statements), Line 20AB on Schedule K-1 and Line 20Z on Schedule K-1.

Ryan Ross (111-11-1112), Oscar Omega (222-22-2223), Clark Carey (333-33-3334), and Kim Kardigan (444-44-4445) are equal active members in ROCK the Ages LLC. ROCK serves as agents and managers for prominent musicians in the Los Angeles area. The LLC's Federal ID number is 55-5555555. It uses the cash basis and the calendar year and began operations on January 1, 2006. Its current address is 6102 Wilshire Boulevard, Suite 2100, Los Angeles, CA 90036. ROCK was the force behind such music icons as Rhiannon, Burgundy Six, Elena Gomez, Tyler Quick, the Moonwalkers, and Conjuring Dragons and has had a very profitable year. The following information was taken from the LLC's income statement for the current year.

Revenues
Fees and commissions	$4,800,000
Taxable interest income from bank deposits	1,600
Tax-exempt interest	3,200
Net gain on stock sales	4,000
Total revenues	$4,808,800
Expenses
Advertising and public relations	$380,000
Charitable contributions	28,000
Section 179 expense	20,000
Employee salaries and wages	1,000,000
Guaranteed payment (services), Ryan Ross, office manager	800,000
Guaranteed payment (services), other members	600,000
Entertainment, subject to 50% disallowance	200,000
Travel	320,000
Legal and accounting fees	132,000
Office rentals paid	80,000
Interest expense on operating line of credit	10,000
Insurance premiums	52,000
Office expense	200,000
Payroll taxes	92,000
Utilities	54,800
Total expenses	$3,968,800

During the past couple of years, ROCK has taken advantage of bonus depreciation and 179 deductions and fully remodeled the premises and upgraded its leasehold improvements. This year, ROCK wrapped up its remodel with the purchase of $20,000 of office furniture for which it will claim a 179 deduction. (For simplicity, assume that ROCK uses the same cost recovery methods for both tax and financial purposes.) There is no depreciation adjustment for alternative minimum tax purposes. While the property is fully depreciated, it is not beyond the end of its depreciable life for purposes of the qualified business income deduction.

ROCK invests much of its excess cash in non-dividend-paying growth stocks and tax-exempt securities. During the year, the LLC sold two securities. On June 15, 2018, ROCK purchased 1,000 shares of Tech, Inc., stock for $100,000; it sold those shares on December 15, 2018, for $80,000. On March 15, 2017, ROCK purchased 2,000 shares of BioLabs, Inc., stock for $136,000; it sold those shares for $160,000 on December 15, 2018. These transactions were reported to the IRS on Forms 1099B; ROCK's basis in these shares was reported.

Net income per books is $840,000. The firm's activities do not constitute "qualified production activities" for purposes of the 199 deduction. On January 1, 2018, the members' capital accounts equaled $200,000 each. No additional capital contributions were made in 2018. In addition to their guaranteed payments, each member withdrew $250,000 cash during the year. The LLC's balance sheet as of December 31, 2018, is as follows.

	Beginning		Ending
Cash	$444,000		$??
Tax-exempt securities	120,000		120,000
Marketable securities	436,000		300,000
Leasehold improvements, furniture, and equipment	960,000		980,000
Accumulated depreciation	(960,000)		(980,000)
Total assets	$1,000,000		$??
Operating line of credit	$200,000		$160,000
Capital, Ross	200,000		??
Capital, Omega	200,000		??
Capital, Carey	200,000		??
Capital, Kardigan	200,000		??
Total liabilities and capital	$1,000,000		$??

All debt is shared equally by the members. Each member has personally guaranteed the debt of the LLC. All members are active in LLC operations. the business code for the entity is 711410. Prepare the 2018 Form 1065, Form 8949, Schedule D, Form 4562 and the requested Federal statements for ROCK the Ages LLC. Prepare Schedule K1 for Ryan Ross.

Statement 3 Form 1065, Schedule K, Line 20c Other Reportable Items Section 199A Qualified Business Income ...... ...... $ ...... 2,379,200 x 1,000,000 Section 199A W-2 Wages ...... Section 199A Unadjusted Basis ....... 20,000 20 Other information 400 250,000 16,000 x 4,000 x Statement 3 Form 1065, Schedule K, Line 20c Other Reportable Items Section 199A Qualified Business Income ...... ...... $ ...... 2,379,200 x 1,000,000 Section 199A W-2 Wages ...... Section 199A Unadjusted Basis ....... 20,000 20 Other information 400 250,000 16,000 x 4,000 x