I need this done today 6/16/2015 by 4:00 P.M.

I am using H7R Block software.

Forms to be turned in: Form 1065 All Pages Schedules B-1 and K-1 Form 1125-A (COGS): 1 page Form 8916 A M-3 On January 1, 200y, the Branson Company (EIN 22-2222222) and Porto Engineering,Inc. (EIN 33-3333333), formed Branto, LLC (an equally owned joint venture). During its first four years, the LLC worked with the U.S. Department of Homeland Security and the National Transportation Safety Board to design and develop a specific device for airport passenger screening. Porto provides engineering expertise, and Branson provides high-tech manufacturing, selling, and distribution expertise. Early in 2012, the two governmental agencies recommended the product. In 2013, Branto's screening device was being successfully marketed, sold, delivered, and installed in airports around the United States. The LLC uses the accrual method of accounting and the calendar year for reporting purposes. Its current address is 3750 Airport Boulevard, Seattle, WA, 98124. The following information was taken from the trial balance supporting the LLC's GAAPbasis (audited) financial statements for the 2013 calendar year: Revenues: Sales revenues $40,000,000 Interest income 50,000 Total revenues $40,050,000 Amounts related to cost of goods sold: Beginning inventory $ 2,000,000 Materials purchases 8,000,000 Labor 9,000,000 Additional 263A costs -0- Other costs: Various items 2,700,000 Book depreciation 1,275,000 Less: Ending inventory (3,000,000) Total amount of work in progress $19,975,000 Other costs not related to production: Salaries and wages $ 1,000,000 Taxes and licenses 300,000 Charitable contributions 100,000 Interest expense 200,000 Meals and entertainment (subject to 50% disallowance) 1,200,000 Travel expenses 800,000 Insurance (including key employee life insurance of $100,000) 300,000 Legal and professional fees 900,000 Office expenses 2,000,000 Sales and promotion expenses 1,500,000 Utilities 800,000 Warranty expense (increase to reserves; not fixed and determinable) 300,000 Total other costs $10,400,000 Net income per books and GAAP-basis audited financial statements $ 9,675,000 The beginning and ending GAAP-basis balance sheets for the LLC were as follows at December 31, 2013: Beginning Ending Cash $ 975,000 $ 825,000 Accounts receivable 620,000 2,600,000 Inventories 2,000,000 3,000,000 U.S. government obligations 1,000,000 1,000,000 Land 600,000 600,000 Buildings and equipment 12,000,000 19,500,000 Accumulated depreciation (6,375,000) (7,650,000) Total assets $10,820,000 $19,875,000 Accounts payable $ 420,000 $ 800,000 Other current liabilities: Operating line of credit (guaranteed by LLC members) 1,000,000 2,500,000 Warranty reserves (not guaranteed by members) 200,000 500,000 Mortgage notes on building 5,000,000 6,000,000 Capital, Branson Company 2,100,000 3,537,500 Capital, Porto Engineering, Inc. 2,100,000 3,537,500 Total liabilities and capital $10,820,000 $19,875,000 The LLC uses the lower of cost or market method for valuing inventory. Branto is subject to 263A; for simplicity, assume that 263A costs are reflected in the same manner for book and tax purposes. Branto did not change its inventory accounting method during the year. There were no write-downs of inventory items, and Branto does not use the LIFO method. The LLC claimed $2,499,270 of depreciation expense for tax purposes (book depreciation is $1,275,000). All tax depreciation expense should be reported on Form 1125-A. The LLC placed $7.5 million of assets in service during the current year; this exceeds the threshold for eligibility for a 179 deduction. Current asset additions are treated as 5-year MACRS assets. The LLC has a positive adjustment of 98,100 for AMT purposes related to tax deprecation (tax depreciation exceeds that allowable for AMT purposes.) All borrowings were used exclusively for business operations; consequently, none of the interest expense is considered investment interest expense. The LLC members were required to guarantee the debt related to the operating line of credit. The accounts payable, accrued warranty claim liabilities, and mortgage were not guaranteed by the members. The mortgage relates to the real property and is considered qualified nonrecourse financing. The partners share equally in all LLC liabilities, because all initial contributions and all ongoing allocations and distributions are pro rata. The LLC's activities are eligible for the domestic production activities deduction (DPAD). For simplicity, assume that the LLC's qualified production activities income (QPAI) is $9.5 million. The LLC's production-related W-2 wages are $10 million. Because of prior state losses and tax concessions, no current or deferred state income taxes are reported for financial purposes. No guaranteed payments were paid to either of the LLC members. Instead, the members each withdrew $3.4 million of cash during the year.None of the members contributed cash or other proerty to the LLC during the year. Both LLC members are U.S. Subchapter C corporations. Both members are classified as domestic corporation and "LLC member managers" on Schedule K-1. The IRS's business code for \"Other specialty trade contractors\" is 238900. The LLC files its tax return in Ogden, Utah. Branson Company is located at 3750 Airport Boulevard, Seattle, WA 98124 (the same as the LLC's address). The capital account reconciliation on the partners' Schedules K-1 is prepared on a GAAP basis, as is the LLC's Schedule L and M-2. On the Analysis of Income (Loss), reported on the line for limited partners. The LLC is required to file Schedule M-3, Forms 8916 A (Supplemental Attachment to Schedule M-3), and Schedule C with its Form 1065. The instructions for Schedule M-3 state that, if a line despcription is provided on page 2 or 3 of the form (or on Form 8916), an income of expense item should be reported on the M-3 regardless of whether there is a book-tax difference. a. Prepare pages 1, 4, and 5 of Form 1065 and Form 1125-A for Branto, LLC. Do not prepare Form 4562. Leave any items blank where insufficient information has been provided. Prepare supporting schedules as necessary if adequate information is provided. Prepare supporting schedules as necessary if adequate information is provided. b. Prepare Schedule M-3 and Form 8916-A (page 1 only). Do not prepare Schedule C. Hint: You will find four book-tax differences (two temporary differences and two permanent differences). c. Prepare Schedule K-1 for 50% LLC member Branson Company. Form 1125-A (Rev. December 2012) Department of the Treasury Internal Revenue Service Name Cost of Goods Sold OMB No. 1545-2225 Attach to Form 1120, 1120-C, 1120-F, 1120S, 1065, or 1065-B. Information about Form 1125-A and its instructions is at www.irs.gov/form1125a. BRANTO LLC 1 Inventory at beginning of year 2 Purchases . . . . . . Employer identification number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 2000000 8000000 3 4 5 Cost of labor . . . . . . . . . . . Additional section 263A costs (attach schedule) . Other costs (attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 5 9000000 0 5199270 6 7 Total. Add lines 1 through 5 . Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7 24199270 3000000 8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on Form 1120, page 1, line 2 or the appropriate line of your tax return (see instructions) . . . . . . . . . . . . . . . Check all methods used for valuing closing inventory: (i) Cost 8 21199270 9a . . . . . . . . . . . . . . . . . . . . . . b Lower of cost or market (ii) Other (Specify method used and attach explanation.) (iii) Check if there was a writedown of subnormal goods . . . . . . . . . . c Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) . . . . . . d If the LIFO inventory method was used for this tax year, enter amount of closing inventory computed under LIFO . . . . . . . . . . . . . . . . . . . . . . . . . . . 9d If property is produced or acquired for resale, do the rules of section 263A apply to the entity (see instructions)? . . e f . . . . . . . . . . . . Was there any change in determining quantities, cost, or valuations between opening and closing inventory? If \"Yes,\" attach explanation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Section references are to the Internal Revenue Code unless otherwise noted. General Instructions Purpose of Form Use Form 1125-A to calculate and deduct cost of goods sold for certain entities. Who Must File Filers of Form 1120, 1120-C, 1120-F, 1120S, 1065, or 1065-B, must complete and attach Form 1125-A if the applicable entity reports a deduction for cost of goods sold. Inventories Generally, inventories are required at the beginning and end of each tax year if the production, purchase, or sale of merchandise is an income-producing factor. See Regulations section 1.471-1. If inventories are required, you generally must use an accrual method of accounting for sales and purchases of inventory items. Exception for certain taxpayers. If you are a qualifying taxpayer or a qualifying small business taxpayer (defined below), you can adopt or change your accounting method to account for inventoriable items in the same manner as materials and supplies that are not incidental. Under this accounting method, inventory costs for raw materials purchased for use in producing finished goods and merchandise purchased for resale are deductible in the year the finished goods or merchandise are sold (but not before the year you paid for the raw materials or merchandise, if you are also using the cash method). If you account for inventoriable items in the same manner as materials and supplies that are not incidental, you can currently deduct expenditures for direct labor and all indirect costs that would otherwise be included in inventory costs. See the instructions for lines 2 and 7. For additional guidance on this method of accounting, see Pub. 538, Accounting Periods and Methods. For guidance on adopting or changing to this method of accounting, see Form 3115, Application for Change in Accounting Method, and its instructions. Qualifying taxpayer. A qualifying taxpayer is a taxpayer that, (a) for each prior tax year ending after December 16, 1998, has average annual gross receipts of $1 million or less for the 3 prior tax years and (b) its business is not a tax shelter (as defined in section 448(d)(3)). See Rev. Proc. 2001-10, 2001-2 I.R.B. 272. Qualifying small business taxpayer. A qualifying small business taxpayer is a taxpayer that, (a) for each prior tax year For Paperwork Reduction Act Notice, see instructions. Cat. No. 55988R Yes No Yes No ending on or after December 31, 2000, has average annual gross receipts of $10 million or less for the 3 prior tax years, (b) whose principal business activity is not an ineligible activity, and (c) whose business is not a tax shelter (as defined in section 448 (d)(3)). See Rev. Proc. 2002-28, 2002-18 I.R.B. 815. Uniform capitalization rules. The uniform capitalization rules of section 263A generally require you to capitalize, or include in inventory, certain costs incurred in connection with the following. The production of real property and tangible personal property held in inventory or held for sale in the ordinary course of business. Real property or personal property (tangible and intangible) acquired for resale. The production of real property and tangible personal property by a corporation for use in its trade or business or in an activity engaged in for profit. See the discussion on section 263A uniform capitalization rules in the instructions for your tax return before completing Form 1125-A. Also see Regulations sections 1.263A-1 through 1.263A-3. See Regulations section 1.263A-4 for rules for property produced in a farming business. Form 1125-A (Rev. 12-2012) Form 1125-A (Rev. 12-2012) Specific Instructions Line 1. Inventory at Beginning of Year If you are changing your method of accounting for the current tax year, you must refigure last year's closing inventory using the new method of accounting. Enter the result on line 1. If there is a difference between last year's closing inventory and the refigured amount, attach an explanation and take it into account when figuring any section 481(a) adjustment. Line 2. Purchases If you account for inventoriable items in the same manner as materials and supplies that are not incidental, enter amounts paid for all raw materials and merchandise during the tax year on line 2. The amount you can deduct for the tax year is figured on line 8. Reduce purchases by items withdrawn for personal use. For a partnership, the cost of these items should be shown on Schedule K and Schedule K-1 as distributions to partners. Line 4. Additional Section 263A Costs If you elected a simplified method of accounting, enter on line 4 the balance of section 263A costs paid or incurred during the tax year not includible on lines 2, 3, and 5. If you elected the simplified production method, additional section 263A costs are generally those costs, other than interest, that were not capitalized under your method of accounting immediately prior to the effective date of section 263A, but are now required to be capitalized under section 263A. For details, see Regulations section 1.263A-2(b). If you elected the simplified resale method, additional section 263A costs are generally those costs incurred with respect to the following categories. Off-site storage or warehousing. Purchasing. Handling, such as processing, assembling, repackaging, and transporting. General and administrative costs (mixed service costs). Line 5. Other Costs Enter on line 5 any costs paid or incurred during the tax year not entered on lines 2 through 4. Attach a statement listing details of the costs. Special Rules for Cooperatives Cooperatives are allowed to deduct certain per-unit retain allocations. Include these costs on line 5. Attach a statement listing details of per-unit retain allocations paid in: Qualified per-unit retain certificates, Money or other property (except nonqualified per-unit certificates), and Nonqualified per-unit retain certificates redeemed this year. Page Per-unit retain allocations. A cooperative is allowed to deduct from its taxable income amounts paid during the payment period for the tax year as per-unit retain allocations to the extent paid in money, qualified per-unit retain certificates or other property with respect to marketing occurring during such tax year. A per-unit retain allocation is any allocation from a cooperative to a patron with respect to products marketed for him without reference to the cooperative net earnings. A qualified per-unit retain certificate is any per-unit retain certificate that the distributee has agreed to take into account at its stated dollar amount. Nonqualified per-unit retain certificates redeemed this year. Include the amount paid in money or other property (except amounts already included as per-unit retain certificates) to patrons to redeem nonqualified per-unit retain certificates. No deduction is allowed at the time of issuance for a nonqualified per-unit retain certificate. However, the cooperative may take a deduction in the year the certificate is redeemed, subject to the stated dollar amount of the certificate. See section 1383. Also see the instructions for line 29h of Form 1120-C, U.S. Income Tax Return for Cooperative Associations, for a special rule for figuring the cooperative's tax in the year of redemption of a nonqualified per-unit retain certificate. Line 7. Inventory at End of Year See Regulations sections 1.263A-1 through 1.263A-3 for details on figuring the amount of additional section 263A costs to be included in ending inventory. If you account for inventoriable items in the same manner as materials and supplies that are not incidental, enter on line 7 the portion of your raw materials and merchandise purchased for resale that was included in the total on line 6 but was not sold during the year. Line 8. Cost of Goods Sold Enter the amount from line 8 on your tax return as follows. Filers of Form 1120, 1120-C, 1120S, 1065, and 1065-B, enter cost of goods sold on page 1, line 2. Filers of Form 1120-F, enter cost of goods sold on page 3, Section II, line 2. Lines 9a Through 9f. Inventory Valuation Methods Inventories can be valued at: Cost, Cost or market value (whichever is lower), or Any other method approved by the IRS that conforms to the requirements of the applicable regulations cited below. However, if you are using the cash method of accounting, you are required to use cost. Rolling average method. Generally, a rolling average method that is used to value inventories for financial accounting purposes does not clearly reflect income for federal income tax purposes. 2 However, if a filer uses the average cost method for financial accounting purposes, there are safe harbors under which this method will be deemed to clearly reflect income for federal income tax purposes. For details, see Rev. Proc. 2008-43, 2008-30 I.R.B. 186 as modified by Rev. Proc. 2008-52, 2008-36 I.R.B. 587, as modified by Rev. Proc. 2011-14, 2011-4 I.R.B. 330, or a successor. Filers that use erroneous valuation methods must change to a method permitted for federal income tax purposes. Use Form 3115 to make this change. For more information on inventory valuation methods, see Pub. 538. For more information on changes in the method of accounting for inventory, see Form 3115 and the Instructions for Form 3115. Line 9a. Method of valuing closing inventory. On line 9a, check the method(s) used for valuing inventories. Under lower of cost or market, the term \"market\" (for normal goods) means the current bid price prevailing on the inventory valuation date for the particular merchandise in the volume usually purchased by the filer. For a manufacturer, market applies to the basic elements of costraw materials, labor, and burden. If section 263A applies, the basic elements of cost must reflect the current bid price of all direct costs and all indirect costs properly allocable to goods on hand at the inventory date. Inventory may be valued below cost when the merchandise is unsalable at normal prices or unusable in the normal way because the goods are subnormal due to damage, imperfections, shopwear, change of style, odd or broken lots, or other similar causes, including secondhand goods taken in exchange. The goods may be valued at the bona fide selling price, minus the direct cost of disposition (but not less than scrap value). Bona fide selling price means actual offering of goods during a period ending not later than 30 days after inventory date. Lines 9c and 9d. LIFO method. If this is the first year the Last-in, First-out, (LIFO) inventory method was either adopted or extended to inventory goods not previously valued under the LIFO method provided in section 472, attach Form 970, Application To Use LIFO Inventory Method, or a statement with the information required by Form 970. Check the LIFO box on line 9c. On line 9d, enter the amount of total closing inventories computed under section 472. Estimates are acceptable. If you changed or extended your inventory method to LIFO and had to write up the opening inventory to cost in the year of election, report the effect of the write-up as other income, on your applicable return, proportionately over a 3-year period that begins with the year of the LIFO election. Form 1125-A (Rev. 12-2012) Note. Entities using the LIFO method that make an S corporation election or transfer LIFO inventory to an S corporation in a nonrecognition transaction may be subject to an additional tax attributable to the LIFO recapture amount. See the instructions for Form 1120, Schedule J, line 11. Line 9e. If property is produced or acquired for resale and the rules of section 263A apply to the corporation, cooperative, partnership, or other applicable entity, check the "Yes" box on line 9e. Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. Page You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax. You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103. 3 The time needed to complete and file this form will vary depending on individual circumstances. The estimated average time is: Recordkeeping . . . . 4 hr., 18 min. Learning about the law or the form . . . . 1 hr., 33 min. Preparing and sending the form to the IRS . . . . . . 2 hr., 53 min. If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. See the instructions for the tax return with which this form is filed. 1065 Form Department of the Treasury Internal Revenue Service A Principal business activity U.S. Return of Partnership Income SPEC DEVICE C Business code number H I J D Employer identification number Name of partnership Print or type. 238900 G 2012 BRANTO LLC SPEC TRADE CONTR B Principal product or service OMB No. 1545-0099 , 2012, ending 31 DEC , 20 01 JAN 12 . Information about Form 1065 and its separate instructions is at www.irs.gov/form1065. For calendar year 2012, or tax year beginning E Date business started Number, street, and room or suite no. If a P.O. box, see the instructions. 3750 AIRPORT BOULEVARD JAN 1, 06 City or town, state, and ZIP code F Total assets (see the instructions) SEATTLE WA 98124 (1) (2) (3) Initial return Final return Name change (4) Address change (6) Technical termination - also check (1) or (2) Other (specify) Check accounting method: (1) Cash (2) Accrual (3) Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year 2 (5) Check applicable boxes: Check if Schedules C and M-3 are attached . 16375000 $ . . . . . . . . . . . . . . . . . . . . . . Amended return . . . . . Deductions (see the instructions for limitations) Income Caution. Include only trade or business income and expenses on lines 1a through 22 below. See the instructions for more information. 1a b c 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16a b 17 18 19 20 21 22 Signature of general partner or limited liability company member manager Print/Type preparer's name Firm's name Preparer's signature Paid Preparer Use Only 1c 2 3 4 5 6 7 8 9 10 11 12 13 14 15 40000000 21199270 18800730 0 0 0 0 18800730 1000000 0 0 0 0 300000 200000 16c 17 18 19 20 21 22 0 0 300000 300000 7600000 9700000 9100730 Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than general partner or limited liability company member manager) is based on all information of which preparer has any knowledge. Sign Here 1a Gross receipts or sales . . . . . . . . . . . . . 40000000 Returns and allowances . . . . . . . . . . . . 1b 0 Balance. Subtract line 1b from line 1a . . . . . . . . . . . . . . . . . . Cost of goods sold (attach Form 1125-A) . . . . . . . . . . . . . . . . Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) . . Net farm profit (loss) (attach Schedule F (Form 1040)) . . . . . . . . . . . . Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . . . . . Other income (loss) (attach statement) . . . . . . . . . . . . . . . . . Total income (loss). Combine lines 3 through 7 . . . . . . . . . . . . . . Salaries and wages (other than to partners) (less employment credits) . . . . . . . Guaranteed payments to partners . . . . . . . . . . . . . . . . . . . Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . Depreciation (if required, attach Form 4562) . . . . . . 16a 0 Less depreciation reported on Form 1125-A and elsewhere on return 16b 0 Depletion (Do not deduct oil and gas depletion.) . . . . . . . . . . . . . Retirement plans, etc. . . . . . . . . . . . . . . . . . . . . . . . Employee benefit programs . . . . . . . . . . . . . . . . . . . . . Other deductions (attach statement) . . . . . . . . . . . . . . . . . . Total deductions. Add the amounts shown in the far right column for lines 9 through 20 . Ordinary business income (loss). Subtract line 21 from line 8 . . . . . . . . . May the IRS discuss this return with the preparer shown below (see instructions)? Yes No Date Date PTIN Firm's EIN Firm's address For Paperwork Reduction Act Notice, see separate instructions. Check if self- employed Phone no. Cat. No. 11390Z Form 1065 (2012) Form 1065 (2012) Schedule B 1 a c e 2 3 a Page 2 Other Information What type of entity is filing this return? Check the applicable box: Domestic general partnership b Domestic limited partnership Domestic limited liability company d Domestic limited liability partnership Other Foreign partnership f At any time during the tax year, was any partner in the partnership a disregarded entity, a partnership (including an entity treated as a partnership), a trust, an S corporation, an estate (other than an estate of a deceased partner), or a nominee or similar person? . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No At the end of the tax year: Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization, or any foreign government own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If \"Yes,\" attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership . . . . . . . . . . . b Did any individual or estate own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If \"Yes,\" attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership . . . . . . . . . . . . . . . . . . . . 4 a At the end of the tax year, did the partnership: Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation? For rules of constructive ownership, see instructions. If \"Yes,\" complete (i) through (iv) below . . . . . . . . . . . . . . . . . . . . . (i) Name of Corporation (ii) Employer Identification Number (if any) (iii) Country of Incorporation (iv) Percentage Owned in Voting Stock b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If \"Yes,\" complete (i) through (v) below . . (i) Name of Entity (ii) Employer Identification Number (if any) (iii) Type of Entity (iv) Country of Organization (v) Maximum Percentage Owned in Profit, Loss, or Capital Yes 5 No Did the partnership file Form 8893, Election of Partnership Level Tax Treatment, or an election statement under section 6231(a)(1)(B)(ii) for partnership-level tax treatment, that is in effect for this tax year? See Form 8893 for more details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Does the partnership satisfy all four of the following conditions? a The partnership's total receipts for the tax year were less than $250,000. b The partnership's total assets at the end of the tax year were less than $1 million. c Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return. d The partnership is not filing and is not required to file Schedule M-3 . . . . . . . . . . . . . . . If \"Yes,\" the partnership is not required to complete Schedules L, M-1, and M-2; Item F on page 1 of Form 1065; or Item L on Schedule K-1. 7 Is this partnership a publicly traded partnership as defined in section 469(k)(2)? . . . . . . . . . . . . During the tax year, did the partnership have any debt that was cancelled, was forgiven, or had the terms 8 modified so as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . . . . Has this partnership filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide 9 information on any reportable transaction? . . . . . . . . . . . . . . . . . . . . . . . . 10 At any time during calendar year 2012, did the partnership have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account)? See the instructions for exceptions and filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts. If \"Yes,\" enter the name of the foreign country. Form 1065 (2012) Form 1065 (2012) Schedule B Page Yes 11 3 Other Information (continued) No At any time during the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If \"Yes,\" the partnership may have to file Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. See instructions . . . . . . . . . 12a Is the partnership making, or had it previously made (and not revoked), a section 754 election? . . . . . . See instructions for details regarding a section 754 election. b Did the partnership make for this tax year an optional basis adjustment under section 743(b) or 734(b)? If \"Yes,\" attach a statement showing the computation and allocation of the basis adjustment. See instructions . . . . c 13 14 15 16 17 Is the partnership required to adjust the basis of partnership assets under section 743(b) or 734(b) because of a substantial built-in loss (as defined under section 743(d)) or substantial basis reduction (as defined under section 734(d))? If \"Yes,\" attach a statement showing the computation and allocation of the basis adjustment. See instructions. Check this box if, during the current or prior tax year, the partnership distributed any property received in a like-kind exchange or contributed such property to another entity (other than disregarded entities wholly-owned by the partnership throughout the tax year) . . . . . . . . . . . . . . . . . At any time during the tax year, did the partnership distribute to any partner a tenancy-in-common or other undivided interest in partnership property? . . . . . . . . . . . . . . . . . . . . . . . . If the partnership is required to file Form 8858, Information Return of U.S. Persons With Respect To Foreign Disregarded Entities, enter the number of Forms 8858 attached. See instructions Does the partnership have any foreign partners? If \"Yes,\" enter the number of Forms 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, filed for this partnership. Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return. 18a Did you make any payments in 2012 that would require you to file Form(s) 1099? See instructions . . . . . b If \"Yes,\" did you or will you file required Form(s) 1099? . . . . . . . . . . . . . . . . . . . . Enter the number of Form(s) 5471, Information Return of U.S. Persons With Respect To Certain Foreign 19 Corporations, attached to this return. 20 Enter the number of partners that are foreign governments under section 892. Designation of Tax Matters Partner (see instructions) Enter below the general partner or member-manager designated as the tax matters partner (TMP) for the tax year of this return: Identifying number of TMP Phone number of TMP Name of designated TMP If the TMP is an entity, name of TMP representative Address of designated TMP Form 1065 (2012) Form 1065 (2012) Schedule K 1 2 3a Income (Loss) b c 4 5 6 7 8 9a Alternative Other Information Minimum Tax (AMT) Items Foreign Transactions Credits SelfEmploy- Deductions ment b c 10 11 12 13a b c d 14a b c 15a b c d e f 16a b c d g i l m n 17a b c d e f 18a b c 19a b 20a b c Page Partners' Distributive Share Items Ordinary business income (loss) (page 1, line 22) . . . . . . . . . . . . . 1 Net rental real estate income (loss) (attach Form 8825) . . . . . . . . . . . 2 Other gross rental income (loss) . . . . . . . . 3a 0 Expenses from other rental activities (attach statement) 3b 0 Other net rental income (loss). Subtract line 3b from line 3a . . . . . . . . . 3c Guaranteed payments . . . . . . . . . . . . . . . . . . . . . 4 Interest income . . . . . . . . . . . . . . . . . . . . . . . . 5 Dividends: 6a a Ordinary dividends . . . . . . . . . . . . . . . . . . . . . . . 6b b Qualified dividends 0 Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Net short-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . 8 Net long-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . 9a Collectibles (28%) gain (loss) . . . . . . . . . 9b 0 Unrecaptured section 1250 gain (attach statement) . . 9c 0 Net section 1231 gain (loss) (attach Form 4797) . . . . . . . . . . . . . 10 Other income (loss) (see instructions) Type 11 0 Section 179 deduction (attach Form 4562) . . . . . . . . . . . . . . . 12 Contributions . . . . . . . . . . . . . . . . . . . . . . . . 13a Investment interest expense . . . . . . . . . . . . . . . . . . . 13b (1) Type 0 Section 59(e)(2) expenditures: (2) Amount 13c(2) Other deductions (see instructions) Type 0 13d Net earnings (loss) from self-employment . . . . . . . . . . . . . . . 14a Gross farming or fishing income . . . . . . . . . . . . . . . . . . 14b Gross nonfarm income . . . . . . . . . . . . . . . . . . . . . 14c Low-income housing credit (section 42(j)(5)) . . . . . . . . . . . . . . 15a Low-income housing credit (other) . . . . . . . . . . . . . . . . . 15b Qualified rehabilitation expenditures (rental real estate) (attach Form 3468) . . . . 15c Type 0 15d Other rental real estate credits (see instructions) Type Other rental credits (see instructions) 15e Other credits (see instructions) Type 0 15f Name of country or U.S. possession 0 Gross income from all sources . . . . . . . . . . . . . . . . . . . 16b Gross income sourced at partner level . . . . . . . . . . . . . . . . 16c Foreign gross income sourced at partnership level Passive category e General category 0 f Other 16f Deductions allocated and apportioned at partner level Interest expense h Other . . . . . . . . . . 16h Deductions allocated and apportioned at partnership level to foreign source income Passive category j General category k Other 16k Paid . . . . . . . . Total foreign taxes (check one): Accrued 16l Reduction in taxes available for credit (attach statement) . . . . . . . . . . 16m Other foreign tax information (attach statement) . . . . . . . . . . . . . Post-1986 depreciation adjustment . . . . . . . . . . . . . . . . . 17a Adjusted gain or loss . . . . . . . . . . . . . . . . . . . . . . 17b Depletion (other than oil and gas) . . . . . . . . . . . . . . . . . . 17c Oil, gas, and geothermal propertiesgross income . . . . . . . . . . . . 17d Oil, gas, and geothermal propertiesdeductions . . . . . . . . . . . . . 17e Other AMT items (attach statement) . . . . . . . . . . . . . . . . . 17f Tax-exempt interest income . . . . . . . . . . . . . . . . . . . . 18a Other tax-exempt income . . . . . . . . . . . . . . . . . . . . 18b Nondeductible expenses . . . . . . . . . . . . . . . . . . . . . 18c Distributions of cash and marketable securities . . . . . . . . . . . . . 19a Distributions of other property . . . . . . . . . . . . . . . . . . . 19b Investment income . . . . . . . . . . . . . . . . . . . . . . . 20a Investment expenses . . . . . . . . . . . . . . . . . . . . . . 20b Other items and amounts (attach statement) . . . . . . . . . . . . . . 4 Total amount 9100730 0 0 0 50000 0 0 0 0 0 0 0 50000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Form 1065 (2012) Form 1065 (2012) Page 5 Analysis of Net Income (Loss) Net income (loss). Combine Schedule K, lines 1 through 11. From the result, subtract the sum of Schedule K, lines 12 through 13d, and 16l . . . . . . . . . . . . . . . . . . 1 Analysis by (ii) Individual (iii) Individual (v) Exempt (i) Corporate (iv) Partnership (active) (passive) organization partner type: 1 2 a General partners b Limited partners Schedule L 1 2a b 3 4 5 6 7a b 8 9a b 10a b 11 12a b 13 14 15 16 17 18 19a b 20 21 22 2 Balance Sheets per Books Assets Cash . . . . . . . . . . . . . Trade notes and accounts receivable . . . Less allowance for bad debts . . . . . Inventories . . . . . . . . . . . U.S. government obligations . . . . . Tax-exempt securities . . . . . . . Other current assets (attach statement) . . Loans to partners (or persons related to partners) Mortgage and real estate loans . . . . Other investments (attach statement) . . . Buildings and other depreciable assets . . Less accumulated depreciation . . . . Depletable assets . . . . . . . . . Less accumulated depletion . . . . . Land (net of any amortization) . . . . . Intangible assets (amortizable only) . . . Less accumulated amortization . . . . Other assets (attach statement) . . . . Total assets . . . . . . . . . . . Liabilities and Capital Accounts payable . . . . . . . . . 0 0 0 0 Other current liabilities (attach statement) All nonrecourse loans . . . . . . . . . . . . . 12000000 6375000 0 0 0 0 End of tax year (c) (d) 1825000 2600000 0 620000 2000000 1000000 0 0 0 0 0 15000000 7650000 0 0 5625000 0 600000 0 0 0 0 10820000 420000 0 200000 1000000 0 5000000 0 4200000 10820000 . . . . . 0 0 2600000 3000000 1000000 0 0 0 0 0 7350000 0 600000 0 0 16375000 800000 0 500000 2000000 0 6000000 0 7075000 16375000 Note. Schedule M-3 may be required instead of Schedule M-1 (see instructions). Net income (loss) per books . . . . Income recorded on books this year not included 9675000 6 Income included on Schedule K, lines 1, 2, 3c, 5, 6a, 7, 8, 9a, 10, and 11, not recorded on books this year (itemize): Guaranteed payments (other than health insurance) . . . . . . . 4 on Schedule K, lines 1 through 11 (itemize): a a Depreciation $ 1275000+Charit$50000 b Travel and entertainment $ 600000 5 Add lines 1 through 4 . . . . . . Schedule M-2 Tax-exempt interest $ a Deductions included on Schedule K, lines 1 through 13d, and 16l, not charged against book income this year (itemize): Depreciation $ 2499270 0 0 0 Expenses recorded on books this year not included on Schedule K, lines 1 through 13d, and 16l (itemize): 3 4 5 0 0 Reconciliation of Income (Loss) per Books With Income (Loss) per Return 3 1 2 (vi) Nominee/Other 975000 620000 0 Loans from partners (or persons related to partners) Mortgages, notes, bonds payable in 1 year or more Other liabilities (attach statement) . Partners' capital accounts . . . Total liabilities and capital . . . 0 0 Beginning of tax year (a) (b) Mortgages, notes, bonds payable in less than 1 year Schedule M-1 1 0 9100730 9100730 7 0 2499270 1925000 11600000 8 9 Add lines 6 and 7 . . . . . . . . Income (loss) (Analysis of Net Income (Loss), line 1). Subtract line 8 from line 5 . 2499270 Distributions: a Cash . . b Property . Other decreases (itemize): . . . . . . . . 6800000 0 Add lines 6 and 7 . . . . . 0 6800000 Analysis of Partners' Capital Accounts Balance at beginning of year . Capital contributed: a Cash . b Property Net income (loss) per books . . Other increases (itemize): Add lines 1 through 4 . . . . . . . . . . . . . . 4200000 0 0 9675000 0 13875000 6 7 8 9 . . . Balance at end of year. Subtract line 8 from line 5 9100730 7075000 Form 1065 (2012) Form 8916-A OMB No. 1545-2061 Supplemental Attachment to Schedule M-3 Department of the Treasury Internal Revenue Service Attach to Schedule M-3 for Form 1065, 1120, 1120-L, 1120-PC, or 1120S. Information about Form 8916-A and its instructions is at www.irs.gov/form1120. Name of common parent 2012 Employer identification number BRANTO LLC Employer identification number Name of subsidiary Part I Cost of Goods Sold (a) Expense per Income Statement Cost of Goods Sold Items 1 Amounts attributable to cost flow assumptions 2 (b) Temporary Difference (c) Permanent Difference (d) Deduction per Tax Return Amounts attributable to: a Stock option expense . . . 0 0 0 0 . . . . . . 0 0 0 0 b Other equity based compensation . . . . . . 0 0 0 0 c Meals and entertainment . . . . . . . . . . . 0 0 0 0 . . . . . . . . 0 0 0 0 e Compensation with section 162(m) limitation . . 0 0 0 0 f Pension and profit sharing d Parachute payments . . . . . . . . . 0 0 0 0 g Other post-retirement benefits . . . . . . . 0 0 0 0 h Deferred compensation . . . . . . . 0 0 0 0 i Section 198 environmental remediation costs . . 0 0 0 0 j Amortization . . . . . . . . . . . . . 0 0 0 0 k Depletion . . . . . . . . . . . . . . 0 0 0 0 l Depreciation . . . . . . . . . . . . . 1275000 1224270 0 2499270 m Corporate owned life insurance premiums . . . 0 0 0 0 n Other section 263A costs . . . . . . . . . . . . 0 0 0 0 3 Inventory shrinkage accruals. . . . . . . . 0 0 0 0 4 Excess inventory and obsolescence reserves . . 0 0 0 0 5 Lower of cost or market write-downs . . . 0 0 0 0 6 Other items with differences (attach schedule) . . 0 0 0 0 7 Other items with no differences . . 18700000 8 Total cost of goods sold. Add lines 1 through 7, in columns a, b, c, and d . . . . . . . . . . . . . . . . For Paperwork Reduction Act Notice, see instructions. . 19975000 18700000 1224270 Cat. No. 48657X 0 21199270 Form 8916-A (2012) Page 2 Form 8916-A (2012) Part II Interest Income Interest Income Item 1 (c) Permanent Difference (d) Deduction per Tax Return Other interest income 6 (b) Temporary Difference Intercompany interest income From tax affiliated group 5 (a) Expense per Income Statement Intercompany interest income From outside tax affiliated group 4b (d) Income (Loss) per Tax Return Sale/lease interest income 4a (c) Permanent Difference Interest income from hybrid securities 3 (b) Temporary Difference Tax-exempt interest income 2 (a) Income (Loss) per Income Statement Total interest income. Add lines 1 through 5. Enter total on Schedule M-3 (Forms 1120, 1120-PC, and 1120-L), Part II, line 13 or Schedule M-3 (Forms 1065 and 1120S) Part II, line 11. Part III Interest Expense Interest Expense Item 1 Interest expense from hybrid securities 2 Lease/purchase interest expense 3a Intercompany interest expense Paid to outside tax affiliated group 3b Intercompany interest expense Paid to tax affiliated group 4 Other interest expense 5 Total interest expense. Add lines 1 through 4. Enter total on Schedule M-3 (Form 1120) Part III, line 8; Schedule M-3 (Forms 1120PC and 1120-L), Part III, line 36; Schedule M-3 (Form 1065) Part III, line 27; or Schedule M-3 (Form 1120S) Part III, line 26. Form 8916-A (2012) Page 3 Form 8916-A (2012) Section references are to the Internal Revenue Code unless otherwise noted. Future Developments For the latest information about developments related to Form 8916-A and its instructions, such as legislation enacted after they were published, go to www.irs.gov/form1120. General Instructions Purpose of Form Use Form 8916-A to provide a detailed schedule of the amounts reported on the applicable Schedule M-3 for cost of goods sold, interest income and interest expense. Who Must File Form 8916-A must be filed for each separate entity required to file a Schedule M-3 for Form 1065, Form 1065-B, Form 1120, Form 1120-C, Form 1120-L, Form 1120-PC, or Form 1120S. Consolidated groups. In the case of a consolidated tax group, a Form 8916-A must be filed as part of the Schedules M-3 prepared for the parent company, each subsidiary, the eliminations Schedule M-3, and the consolidated Schedule M-3. It is not required that the supporting detail for Form 8916-A, Part I, line 6, be presented for the eliminations Schedule M-3 or the consolidated Schedule M-3. Mixed groups. In the case of a mixed group (as described in the instructions for Schedule M-3 for Form 1120, Form 1120-L, and Form 1120-PC), a Form 8916-A, if applicable, is required at the sub-consolidated level and the sub-consolidated elimination level. How To File Attach Form 8916-A to each applicable separate Schedule M-3. Specific Instructions A corporation is not required to complete columns (a) and (d) if the corporation is not required to complete these columns on Schedule M-3. See the instructions for Parts II and III of the applicable Schedule M-3. Columns (b) and (c) must be completed for any tax year for which the corporation files Form 8916-A. Part I. Cost of Goods Sold Line 1 Report differences attributable to cost flow assumptions, for example, differences between book and tax LIFO computations. Generally, differences in the LIFO reserves for book and tax purposes should be reported on this line. Line 2n Report differences attributable to section 263A. For example, if book inventory costs do not equal section 471 inventory costs, report differences between section 471 inventory costs and section 263A inventory costs. This includes all cost of goods sold differences, not just differences attributable to additional section 263A cost adjustments to ending inventory. LIFO taxpayers using the simplified production method or the simplified resale method should report the amount of additional section 263A costs computed after LIFO computations. LIFO taxpayers not using a simplified section 263A method should report costs attributable to additional section 263A prior to performing LIFO computation. Differences due to purchasing, and storage and handling costs, should generally be reported on line 2n (to the extent not already included in lines 2a through 2m). Report the additional section 263A cost adjustments to ending inventory on line 2n (and the reversal of the prior year ending inventory, if applicable). Lines 4 and 5 If the taxpayer does not distinguish between obsolescence and excess inventory reserves and lower of cost or market write-downs in its general ledger, report all amounts relating to these reserves on line 4 for excess inventory and obsolescence reserves. Line 6 Attach a schedule that separately states and adequately discloses the nature and amount of each expense reported on this line. See the instructions for the applicable Schedule M-3 for a definition of \"separately stated and adequately disclosed.\" It is not required that the supporting detail for Form 8916-A, Part I, line 6, be presented for the eliminations Schedule M-3 or the consolidated Schedule M-3. Report differences between book inventory costs and section 471 inventory costs on this line. Line 7 Report all other items with no differences on this line. For example, if book inventory costs equal section 471 inventory costs, this line should report total book inventory and section 471 inventory costs without regard to amounts reported on lines 1 through 5. Line 8 Line 8 should equal the amount reported on the applicable Schedule M-3 (Form 1120), Part II, line 17; Schedule M-3 (Form 1120S), Part II, line 15; or Schedule M-3 (Form 1065), Part II, line 15. Part II. Interest Income Line 1 Report on line 1, column (a), tax-exempt interest income defined under section 103. Complete columns (b) and (c), as applicable. Line 2 Report on line 2, column (a), the total amount of interest income included on Schedule M-3, Part I, line 11, from hybrid securities characterized as debt for financial accounting and as equity for tax purposes. Report on line 2, column (d), the total amount of interest income from hybrid securities characterized as equity for financial accounting and as debt for tax purposes. Complete columns (b) and (c), as applicable. Report interest income from a debt that is both a hybrid debt and a related party debt on line 2 and not on line 4a or 4b. Form 8916-A (2012) Line 3 Report on line 3, column (a), the total interest income from periodic payments from transactions characterized as a lease for financial accounting and as a sale for tax purposes. Report on line 3, column (d), the total interest income from periodic payments from transactions characterized as a sale for financial accounting and as a lease for tax purposes. Complete columns (b) and (c), as applicable. See the instructions for sale versus lease for Schedule M-3, Part II, line 18 (Forms 1120 and 1120-L), line 17 (Form 1120-PC), or line 16 (Forms 1120S and 1065). Line 4a Report on line 4a total intercompany interest income from an entity included on Schedule M-3, Part I, line 4 but not included on Schedule M-3, Part I, line 11. Report hybrid security interest income on line 2 and sale/lease interest income on line 3 and not on line 4a. Line 4b Report on line 4b total intercompany interest income from an entity within the tax affiliated group. Report hybrid security interest income on line 2 and sale/lease interest income on line 3 and not on line 4b. Note. Report interest income from a debt that is both a hybrid debt and a related party debt on line 2 and not on line 4a or 4b. Line 5 Report on line 5 total interest income not required to be reported on lines 1 through 4b. Line 6 Line 6 must equal the amount for all columns reported on the applicable Schedule M-3, Part II, line 13 (Forms 1120, 1120-L, and 1120-PC) or line 11 (Forms 1120S and 1065). Part III. Interest Expense Line 1 Report on line 1, column (a), total interest expense from hybrid securities characterized as debt for financial accounting and as equity for tax purposes. Report on line 1, column (d), total interest expense from hybrid securities characterized as equity for financial accounting and as debt for tax purposes. Complete columns (b) and (c), as applicable. Report interest expense from a debt that is both a hybrid debt and a related party debt on line 1 and not on line 3a or 3b. Line 2 Report on line 2, column (a), total interest expense from periodic payments from transactions characterized as a lease for financial accounting and as a purchase for tax purposes. Report on line 2, column (d), total interest expense from periodic payments from transactions characterized as a purchase for financial accounting and as a lease for tax purposes. Complete columns (b) and (c), as applicable. See the instructions for Schedule M-3, Part III, line 34 (Form 1120), line 35 (Forms 1120-L and 1120-PC), or line 28 (Forms 1120S and 1065). Page 4 Line 3a Report on line 3a total intercompany interest expense included on Schedule M-3, Part I, line 4 but not included on Schedule M-3, Part I, line 11. Report hybrid security interest expense or deduction on line 1 and purchase/ lease interest expense or deduction on line 2 and not on line 3a. Line 3b Report on line 3b total intercompany interest expense to an entity within the tax affiliated group. Report hybrid security interest expense or deduction on line 1 and purchase/lease interest expense or deduction on line 2 and not on line 3b. Note. Report interest expense from a debt that is both a hybrid debt and a related party debt on line 1 and not on line 3a or 3b. Line 4 Report on line 4 total interest expense not required to be reported on lines 1 through 3b. Line 5 Line 5 must equal the amounts for all columns reported on the applicable Schedule M-3 (Form 1120), Part III, line 8; Schedule M-3 (Forms 1120-PC and 1120-L), Part III, line 36; Schedule M-3 (Form 1065), Part III, line 27; or Schedule M-3 (Form 1120S), Part III, line 26. Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax. You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103. The time needed to complete and file this form will vary depending on individual circumstances. The estimated average time is: Recordkeeping . . . . . . . . . . 30 hr., 51 min. Learning about the law or the form . . . . . . . . . . . . 30 min. Preparing, copying, assembling, and sending the form to the IRS . . . . . . 1 hr., 1 min. If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. See the instructions for the tax return with which this form is filed. 651112 Final K-1 2012 Schedule K-1 (Form 1065) Part III Partner's Share of Current Year Income, Deductions, Credits, and Other Items 1 01 JAN , 2012 31 DEC , 20 12 Partner's Share of Income, Deductions, See back of form and separate instructions. Credits, etc. Part I A B Information About the Partnership 15 Other net rental income (loss) Guaranteed payments Interest income Ordinary dividends Qualified dividends Credits 4550365 0 0 16 Foreign transactions 0 0 0 Partnership's employer identification number 25000 Partnership's name, address, city, state, and ZIP code BRANTO LLC 3750 AIRPORT BOULEVARD SEATTLE WA 98124 C 3 6b ending Net rental real estate income (loss) 6a year beginning 2 4 For calendar year 2012, or tax Ordinary business income (loss) 5 Department of the Treasury Internal Revenue Service OMB No. 1545-0099 Amended K-1 0 0 7 Royalties 8 Net short-term capital gain (loss) 9a Net long-term capital gain (loss) 9b Collectibles (28%) gain (loss) 9c Unrecaptured section 1250 gain 10 Net section 1231 gain (loss) 11 IRS Center where partnership filed return Other income (loss) 0 D Check if this is a publicly traded partnership (PTP) Part II 0 " Domestic partner Limited partner or other LLC member If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here (see instructions) . . . . . . . . . . . . . 50 50 50 Loss Capital 12 13 50 50 50 % % % . . . . . . Distributions 0 Section 179 deduction 0 Other deductions 25000 % 20 Other information % 0 % 14 $ Qualified nonrecourse financing . . 0 $ . Self-employment earnings (loss) $ Recourse $ . . . . . . Partner's capital account analysis: Beginning capital account . . Capital contributed during the year 2100000 0 4837500 3400000 ) 3537500 $ Current year increase (decrease) . $ Withdrawals & distributions . . $ ( . . $ Ending capital account . Tax basis " . GAAP Section 704(b) book Other (explain) M 0 Partner's share of liabilities at year end: Nonrecourse L 0 19 . Partner's share of profit, loss, and capital (see instructions): Beginning Ending Profit Tax-exempt income and nondeductible expenses COMPANY What type of entity is this partner? (see instructions) I2 K 0 Foreign partner I1 J 18 0 General partner or LLC member-manager H 0 0 Partner's name, address, city, state, and ZIP code BRANSON COMPANY 3750 AIRPORT BOULEVARD SEATTLE WA 98124 G Alternative minimum tax (AMT) items 0 Partner's identifying number 22-2222222 F 17 *See attached statement for additional information. For IRS Use Only E 0 Information About the Partner Did the partner contribute property with a built-in gain or loss? " Yes No If \"Yes,\" attach statement (see instructions) For Paperwork Reduction Act Notice, see Instructions for Form 1065. IRS.gov/form1065 Cat. No. 11394R Schedule K-1 (Form 1065) 2012 Schedule K-1 (Form 1065) 2012 Page This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting information for partners who file Form 1040. For detailed reporting and filing information, see the separate Partner's Instructions for Schedule K-1 and the instructions for your income tax return. 1. Ordinary business income (loss). Determine whether the income (loss) is passive or nonpassive and enter on your return as follows. Report on See the Partner's Instructions Passive loss Passive income Schedule E, line 28, column (g) Nonpassive loss Schedule E, line 28, column (h) Nonpassive income Schedule E, line 28, column (j) 2. Net rental real estate income (loss) See the Partner's Instructions 3. Other net rental income (loss) Net income Schedule E, line 28, column (g) Net loss See the Partner's Instructions 4. Guaranteed payments Schedule E, line 28, column (j) 5. Interest income Form 1040, line 8a 6a. Ordinary dividends Form 1040, line 9a 6b. Qualified dividends Form 1040, line 9b Schedule E, line 4 7. Royalties 8. Net short-term capital gain (loss) Schedule D, line 5 Schedule D, line 12 9a. Net long-term capital gain (loss) 9b. Collectibles (28%) gain (loss) 28% Rate Gain Worksheet, line 4 (Schedule D instructions) 9c. Unrecaptured section 1250 gain See the Partner's Instructions 10. Net section 1231 gain (loss) See the Partner's Instructions 11. Other income (loss) Code A Other portfolio income (loss) See the Partner's Instructions B Involuntary conversions See the Partner's Instructions C Sec. 1256 contracts & straddles Form 6781, line 1 D Mining exploration costs recapture See Pub. 535 E Cancellation of debt Form 1040, line 21 or Form 982 F Other income (loss) See the Partner's Instructions 12. Section 179 deduction See the Partner's Instructions 13. Other deductions A Cash contributions (50%) B Cash contributions (30%) C Noncash contributions (50%) D Noncash contributions (30%) See the Partner's E Capital gain property to a 50% Instructions organization (30%) F Capital gain property (20%) G Contributions (100%) H Investment interest expense Form 4952, line 1 I Deductionsroyalty income Schedule E, line 19 J Section 59(e)(2) expenditures See the Partner's Instructions K Deductionsportfolio (2% floor) Schedule A, line 23 L Deductionsportfolio (other) Schedule A, line 28 M Amounts paid for medical insurance Schedule A, line 1 or Form 1040, line 29 N Educational assistance benefits See the Partner's Instructions O Dependent care benefits Form 2441, line 12 P Preproductive period expenses See the Partner's Instructions Q Commercial revitalization deduction See Form 8582 instructions from rental real estate activities R Pensions and IRAs See the Partner's Instructions S Reforestation expense deduction See the Partner's Instructions T Domestic production activities See Form 8903 instructions information U Qualified production activities income Form 8903, line 7b V Employer's Form W-2 wages Form 8903, line 17 W Other deductions See the Partner's Instructions 14. Self-employment earnings (loss) Note. If you have a section 179 deduction or any partner-level deductions, see the Partner's Instructions before completing Schedule SE. A Net earnings (loss) from Schedule SE, Section A or B self-employment B Gross farming or fishing income See the Partner's Instructions C Gross non-farm income See the Partner's Instructions 15. Credits A Low-income housing credit (section 42(j)(5)) from pre-2008 buildings B Low-income housing credit (other) from pre-2008 buildings C Low-income housing credit (section 42(j)(5)) from See the Partner's Instructions post-2007 buildings D Low-income housing credit (other) from post-2007 buildings E Qualified rehabilitation expenditures (rental real estate) F Other rental real estate credits G Other rental credits H Undistributed capital gains credit Form 1040, line 71; check box a I Alcohol and cellulosic biofuel fuels See the Partner's Instructions credit } } 16. } Report on Code J Work opportunity credit K Disabled access credit L Empowerment zone and renewal community employment credit M Credit for increasing research See the Partner's Instructions activities N Credit for employer social security and Medicare taxes O Backup withholding P Other credits Foreign transactions A Name of country or U.S. possession B Gross income from all sources Form 1116, Part I C Gross income sourced at partner level Foreign gross income sourced at partnership level D Passive category E General category Form 1116, Part I F Other Deductions allocated and apportioned at partner level Form 1116, Part I G Interest expense H Other Form 1116, Part I Deductions allocated and apportioned at partnership level to foreign source income I Passive category J General category Form 1116, Part I K Other Other information L Total foreign taxes paid Form 1116, Part II M Total foreign taxes accrued Form 1116, Part II N Reduction in taxes available for credit Form 1116, line 12 Form 8873 O Foreign trading gross receipts P Extraterritorial income exclusion Form 8873 Q Other foreign transactions See the Partner's Instructions Alternative minimum tax (AMT) items A Post-1986 depreciation adjustment See the Partner's B Adjusted gain or loss C Depletion (other than oil & gas) Instructions and D Oil, gas, & geothermalgross income the Instructions for E Oil, gas, & geothermaldeductions Form 6251 F Other AMT items Tax-exempt income and nondeductible expenses A Tax-exempt interest income Form 1040, line 8b B Other tax-exempt income See the Partner's Instructions C Nondeductible expenses See the Partner's Instructions Distributions A Cash and marketable securities B Distribution subject to section 737 See the Partner's Instructions C Other property Other information A Investment income Form 4952, line 4a B Investment expenses Form 4952, line 5 Form 4136 C Fuel tax credit information D Qualified rehabilitation expenditures See the Partner's Instructions (other than rental real estate) E Basis of energy property See the Partner's Instructions F Recapture of low-income housing Form 8611, line 8 credit (section 42(j)(5)) G Recapture of low-income housing Form 8611, line 8 credit (other) H Recapture of investment credit See Form 4255 I Recapture of other credits See the Partner's Instructions J Look-back interestcompleted See Form 8697 long-term contracts K Look-back interestincome forecast See Form 8866 } } } 17. 18. 19. 20. } } method L Dispositions of property with section 179 deductions M Recapture of section 179 deduction N Interest expense for corporate partners O Section 453(l)(3) information P Section 453A(c) information Q Section 1260(b) information R Interest allocable to production expenditures S CCF nonqualified withdrawals T Depletion informationoil and gas U Amortization of reforestation costs V Unrelated business taxable income W Precontribution gain (loss) X Section 108(i) information Y Other information } See the Partner's Instructions 2 SCHEDULE M-3 (Form 1065) Net Income (Loss) Reconciliation for Certain Partnerships OMB No. 1545-0099 2012 Attach to Form 1065 or Form 1065-B. Department of the Treasury Information about Schedule M-3 (Form 1065) and its instructions is at www.irs.gov/form1065. Internal Revenue Service Employer identification number Name of partnership BRANTO LLC This Schedule M-3 is being filed because (check all that apply): The amount of the partnership's total assets at the end of the tax year is equal to $10 million or more. A B The amount of the partnership's adjusted total assets for the tax year is equal to $10 million or more. If box B is checked, . enter the amount of adjusted total assets for the tax year C The amount of total receipts for the tax year is equal to $35 million or more. If box C is checked, enter the total receipts for . the tax year D An entity that is a reportable entity partner with respect to the partnership owns or is deemed to own an interest of 50 percent or more in the partnership's capital, profit, or loss, on any day during the tax year of the partnership. Name of Reportable Entity Partner Identifying Number Maximum Percentage Owned or Deemed Owned E Voluntary Filer. Part I 1a b c 2 3a b 4a b 5a b 6a b 7a b 8 9 10 11 12 a b c d Financial Information and Net Income (Loss) Reconciliation Did the partnership file SEC Form 10-K for its income statement period ending with or within this tax year? Yes. Skip lines 1b and 1c and complete lines 2 through 11 with respect to that SEC Form 10-K. No. Go to line 1b. See instructions if multiple non-t