I'm hoping to gain a better understanding of how to analyze partnership scenarios and fill in a Schedule K-1 and a Form 1065.

This information included below must be used:

Description Amount

Sales revenue $3,000,000

Cost of Sales $750,000

W2 wages paid to employees $1,050,000

Cost recovery deductions $103,125

Utilities, supplies, and other business expenses $158,000

Taxes and licenses (including payroll) $150,000

Guaranteed payments to LLC members $240,000

Charitable contributions $15,000

Short-term capital gain $14,000

Net income from rental real estate (net of all expenses, including depreciation on rental property $200,000

Qualified dividends received $5,000

Exempt income (bond interest) $10,000

Alternative minimum tax (AMT) adjustment (cost recovery $50,000

Oliver Williams, Dwight Whittington, and Natalie Maloney have decided to start an accounting firm located on 123 Forest Drive, Myrtle Beach, South Carolina 29538 namedAccounting Consultants, Inc. The business was started January 1, 2019 and has 12-3456789 as its Employer Identification Number (EIN). They want to structure their organization as a partnership.

Accounting Consultants, Inc. has elected to use the accrual method. Oliver Williams is the manager and the only accountant of the firm and works 40 hours per week completing accounting duties. Natalie Maloney works as the marketing director and works 20 hours at the office location and 20 hours outside of the office (in the field) maintaining and generating customers. Dwight Whittington and Natalie Maloney each contributed $100,000 in year 1.

Oliver and Natalie both receive guaranteed payments of $5,000 each month for their services to the LLC. Natalie and Dwight both receive $5,000 guaranteed per month for their use of capital. All revenues and expenses are allocated in the expected 25%/50%/25% ratios to Oliver, Natalie, and Dwight, respectively. Based on your readings, research, and additional resources for the week, writ Address the following questions for the partnership based on the information in this problem as well as theExcel spreadsheet for this assignment:

• Part I
• In 4-6, address the following:
• What is the partnership classification of each partner?
• What is a partnership agreement, and how does it apply to this partnership?
• Describe what tax forms must be filed for partnerships.
• What are the tax implications of this partnership? Explain your answer.
• Part II
• Complete the Form 1065(page 1 and Schedule K-1) for this partnership.-------link below
• https://resources.careered.com/LCMSFileSharePreview/Resources/AdobePDF/U2IP_Form%201065--2019.pdf

• Complete the Schedule K-1using the form provided to Natalie Maloney. ------- link below
• https://resources.careered.com/LCMSFileSharePreview/Resources/AdobePDF/U2IP_1065_K1--2019.pdf