HI Can you solve the following tax return with detail steps and solutions.
C:9-58 Healthwise Medical Supplics Company is located at 2400 Sccond Street, City, ST 12345 The company is a gencral partncrship that uses the calendar ycar and accrual basis for both book and tax purposes. It engages in the development and sale of specialized surgical tools to hospitals. The employer identification number (EIN) is XX-2017015. The com- pany formed and began busincss on January 1, 2014. It has no foreign partners or other forcign deali The company has made no distributions other than cash, and no changes in ownership have occurred during the current ycar. Dr. Bailey is thc Tax Matters Partner. The partner- ship makcs no special clections. Table C:9-3 contains book balance shcet information at the beginning and end of the current year, and Table C:9-4 presents a book income state- ment for the current year. Other information follows: ngs. The company is ncither a tax shelter nor a publicly traded partnership. Information on Partnership Formation: Two individuals formed the partncrship on January 1, 2014: Dr. Lcisa H. Bailey (1200 First Pike, City, ST 12345) and Dr. Thomas J. Firth (3600 Third Blvd., City, ST 54321) For a 30% interest, Dr. Bailey contributed $900,000 cash. She is an active general partner who manages the company. For a 70% interest, Dr. Firth contributed $1.74 million cash and 1,000 shares of Fastgrowth, Inc. stock having, at the time of contribution, a $360,000 fair markct valuc (FMV) and a $72,000 adjusted basis. Dr. Firth is an active gencral part ner who designs and develops new products. For book purposes, the company recorded the contribution of stock at fair market value. Inventory and Cost of Goods Sold (Form 1125-A): The company uses the pcriodic inventory method and prices its inventory using the lower of FIFO cost or market. Only beginning inventory, ending inventory, and purchases should be reflected in Schedule A. No other costs or expenses are allocated to cost of goods sold. Note: the company is exempt from the uniform capitalization (UNICAP) rules becausc average gross income for the previous year was less than $10 million [Sec. 263A(b)(2)(B)]. Check (ii) Not applicable Line 9 (a) (e) & (f No Capital Gains and Losses (Schedule D) The company sold all 1,000 shares of the Fastgrowth, Inc. common stock on July 2, 2015, for $1.08 million. Dr. Firth acquired the stock on January 2, 2012, for $72,000 and con- tributed the stock to the company on January 1, 2014, when its FMV was $360,000 C:9-58 Healthwise Medical Supplics Company is located at 2400 Sccond Street, City, ST 12345 The company is a gencral partncrship that uses the calendar ycar and accrual basis for both book and tax purposes. It engages in the development and sale of specialized surgical tools to hospitals. The employer identification number (EIN) is XX-2017015. The com- pany formed and began busincss on January 1, 2014. It has no foreign partners or other forcign deali The company has made no distributions other than cash, and no changes in ownership have occurred during the current ycar. Dr. Bailey is thc Tax Matters Partner. The partner- ship makcs no special clections. Table C:9-3 contains book balance shcet information at the beginning and end of the current year, and Table C:9-4 presents a book income state- ment for the current year. Other information follows: ngs. The company is ncither a tax shelter nor a publicly traded partnership. Information on Partnership Formation: Two individuals formed the partncrship on January 1, 2014: Dr. Lcisa H. Bailey (1200 First Pike, City, ST 12345) and Dr. Thomas J. Firth (3600 Third Blvd., City, ST 54321) For a 30% interest, Dr. Bailey contributed $900,000 cash. She is an active general partner who manages the company. For a 70% interest, Dr. Firth contributed $1.74 million cash and 1,000 shares of Fastgrowth, Inc. stock having, at the time of contribution, a $360,000 fair markct valuc (FMV) and a $72,000 adjusted basis. Dr. Firth is an active gencral part ner who designs and develops new products. For book purposes, the company recorded the contribution of stock at fair market value. Inventory and Cost of Goods Sold (Form 1125-A): The company uses the pcriodic inventory method and prices its inventory using the lower of FIFO cost or market. Only beginning inventory, ending inventory, and purchases should be reflected in Schedule A. No other costs or expenses are allocated to cost of goods sold. Note: the company is exempt from the uniform capitalization (UNICAP) rules becausc average gross income for the previous year was less than $10 million [Sec. 263A(b)(2)(B)]. Check (ii) Not applicable Line 9 (a) (e) & (f No Capital Gains and Losses (Schedule D) The company sold all 1,000 shares of the Fastgrowth, Inc. common stock on July 2, 2015, for $1.08 million. Dr. Firth acquired the stock on January 2, 2012, for $72,000 and con- tributed the stock to the company on January 1, 2014, when its FMV was $360,000
