It's a Partnership Tax Return Project.

Adam Ant 421 Brickell Avenue #1420 Miami, FL 33131 (S.S. # 987-65-4321), Bob Builder 1111 Biscayne Boulevard Miami, FL 33131 (S.S. # 876-54-3210) and Clark Carter 121 Ocean Drive Miami Beach, FL 33149 (S.S. # 765-43-2109) formed the equal ABC Partnership on January 1, 2012. -Its employer identification number is 59-3456789. -Its address is 456 Brickell Avenue Miami, FL 33131. -ABC operates a computer retail store. -Bob is a computer genius and will be the brains behind the operation. -Adam and Bob each contributed cash of $120,000 and Clark contributed property worth $160,000 with a basis of $100,000 and subject to a mortgage of $40,000. -ABC is a cash basis taxpayer, although they use the accrual method for book purposes. In their first year of operations they had the following activity for tax purposes (cash basis): Sales Revenue $420,000 Purchases of inventory $175,000 Ending inventory $45,000 Depreciation $30,000 Section 179 expenses $25,000 Salaries $42,000 Guaranteed payment to Bob $12,000 Purchases of equipment $152,000 Rent expense $21,000 Interest income $5,000 Mortgage interest expense $1,250 Dividend income $1,000 Notes: 1. Depreciation for book purposes was $20,000 and $30,000 for tax purposes before taking section 179 adjustment of $25,000. 2. The $5,000 of interest income is from an interest earning checking account. 3. ABC had bad debt accrual expense of $4,500 for book purposes, but no actual charge-offs during the year. 4. By year-end they had billed $41,000 in revenue that was uncollected. Required: -Prepare a form 1065 for ABC Partnership, including the Schedule K-1 for the partners and all other required schedules. Form 4562 for depreciation is not required. -If any information is missing take reasonable assumptions and attach a listing of those assumptions