I need help with placing these numbers on the each of the tax forms:

Prepare a Form 1065 and appropriate schedules for AB Custom Saddles LLC for tax year 2020

which minimizes the partners individual tax liability based upon the following facts:

AB Custom Saddles is a Domestic LLC formed on 1/1/2004. It has assets of $125,000. Employer

ID #41-678910. It is located at 1601 Mill Road, Windriver, MN 56300. Business code *1234567.

AB has two equal owners, Alan Anderson, SSN 555-00-2211, address: 1112 Broadway Ave., Minneapolis, MN 56011. Alan works full-time for AB and is paid a guaranteed payment (salary) of $30,000 per year. His capital account and basis going into 2020 were both $10,000. Bradley Bailey, SSN 470-31-0202, 1000 3^rd St., Windom, MN 56011 is the other member. He also has a basis and capital account of $10,000 going into 2020. He is not active in the management or operations of the partnership.

AB distributed $5,000 in cash, $2500 to each Alan and Bradley in 2020.

Business information:

Income from sales $175,000

Cost of goods sold 38,000

Rent expense 4,000

Telephone expense 2,000

Advertising 3,000

Salaries to non-owners 27,000

Taxes (employees, personal prop) 2,400

Depreciation from previous years (Line 17 4562) 1,000

Repairs 1,000

AB sold stock (IRC 1221 assets) for $11,000 on 2/1/20 that was purchased on 2/1/04 for $7,000.

AB sold a machine that was fully depreciated (original cost $10,000 acquired 3/15/08) on 3/1/20 for $4,000.

AB bought and placed in service a used machine (7 year property) for $8,000 on June 1, 2020 and wants to expense the entire amount in 2020, if possible, under Code section 179.

*Complete part L of the K-1 for each partner and Schedule M-1 and M-2. Do not complete Schedule L, the Balance Sheet.

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References:

Text

Instructions Form 1065

Instructions Form 1065, Schedule K-1

Publication 541

Will need forms:

1065

1065 Schedule D

1065 Schedule K

(2) 1065 Schedule K-1s

4562

4797

Schedule SE