John Sullivan (123-45-6781) and George Adams (123-45-6782) are 70% and 30% owners, respectively, of M&M, Inc. (11-1111120), a candy company located at 1005 Nutwood Fullerton, CA 92625. M&Ms S election was made on January 15, 2015, its date of incorporation. The following information was taken from the companys 2019 income statement.

Prepare K-1 for both partners and form 4562

Interest income Gross sales receipts Beginning inventory Direct labor Direct materials purchased Direct other costs Ending inventory Salaries and wages Officers' salaries ($75,000 each to Sullivan and Adams) Repairs Depreciation expense, tax and book (assume Section 179) Interest expense Rent expense (operating) Taxes Charitable contributions (cash) Advertising expenses Payroll penalties Other deductions Book income $ 100,000 2,410,000 9,607 (203,102) (278,143) (249,356) 3,467 (442,103) (150,000) (206,106) (15,254) (35,222) (40,000) (65,101) (20,000) (20,000) (15,000) (59,899) 704,574 A comparative balance sheet appears in a separate file. M&M's accounting firm provides the following additional information. Distributions to shareholders Beginning balance, Accumulated adjustments account Ordinary business income for QBI W-2 wages for QBI $100,000 111,148 639,574 795,205 A comparative balance sheet appears below. Cash Accounts receivable Inventories Prepaid expenses Building and equipment Accumulated depreciation Land Total assets January 1,2019 December 31, 2019 $ 47,840 $ ? 93,100 123,104 9,607 3,467 8,333 17,582 138,203 185,348 (84,235) (?) 2,000 2,000 $214,848 $844,422 $ 42,500 $ 72,300 4,500 2,100 26,700 24,300 30,000 30,000 111,148 ? $214,848 $844,422 Accounts payable Notes payable (less than 1 year) Notes payable (more than 1 year) Capital stock Retained earnings Total liabilities and capital