Note: This problem is for the 2021 tax year. Ryan Ross (111-11-1112), Oscar Omega (222-22-2223), Clark Carey (333-33-3334), and Kim Kardigan (444-44-4445) are equal active members in ROCK the Ages LLC. ROCK serves as agent and manager for prominent musicians in the Los Angeles area. The LLC's Federal to number is 55-5555556. It uses the cash basis and the calendar year and began operations on January 1, 2009. 1ts current address is 6102 Wilshire Boulevard, Suite 2100, Los Angeles, CA 90036. ROCK was the force behind such musicicons as Adrianna Venti, Drake Malone, Elena Gomez, Tyler Quick, Queen Bey, and Bruno Mercury and has had a very profitable year. The following information was taken from the LCC's income statement for the current year. Week 6: Form 1065 Tax Return Sim Print Item 5179 expense Employee salaries and wages Guaranteed payment (services), Ryan Ross, office manager Guaranteed payment (services), other members Business meals, subject to 50% disallowance Business restaurant meals and travel ( 100% deductible) Legal and accounting fees Office rentals paid Interest expense on operating line of credit Insurance premiums Office expense Payroll taxes utilities Total expenses 20,000 1,000,000 800,000 600,000 200,000 320,000 132,000 80,000 10,000 52,000 200,000 92,000 54,800 $3,968,800 Recentfy, ROCK has taken advantage of bonus deprecation and 5179 deductions and fully remodeled the premises and uporaded its leasehold improvernents. This year, ROCK wrapped up its remodel with the purchase of $20,000 of office furniture for which it will daim a 5179 deduction. (For simplicity, assume that RoCK uses the same cost recovery methods for both fax and financial purposes.) There is no depreciation adjustment for altemative minimum tax purposes, ROCK invests much of its excess cash in non-dividend-paying growth stocks and tax-exempt securities. During the year, the LC sold two securities. On June 15,2021 , RoCK purchased 1,000 shares of Tech, Inc., stock for $100,000; it sold those shares on December is, 2021, for $80,000, On Mach 15, 2020, RoCK purchased 2,000 shares of Blotabs, Inc, stock for $136,000; it sold those shares for $160,000 on Decomber 15,2021 . These transactions were reported to the IRS on forms-1099-8; ROCK's basis in these shares was reported. Net incorne per books is 5840,000 . On January 1, 2021, the members' tax basis capltal accounts equaled $200,000 each. No additional capital contributions were made in 2021 . In addition to their guaranteed paymenta, each mamber withdrew 5250,000 cash during the year. All contributions and distributions have been in cash, so the LC has no net unrecoonized 5 . 704(c) gain or loss. The 4.C5 balance sheet as of Decernber 31,2021 , is as follows. Feedback The firm's activities do not constitute "qualified production activities" for purposes of the 5199 deduction. (Note that the 5179 deduction a business-related expense.) The LIC's UBIA (unadjusted basis immedlately after acquisition) equals the total orioinal cost of all leasehol improvements, or $980,000. All deht is shared equally by the members. Each member has personally guaranteed the debt of the LC. All members are active in LC operations, The business code for the entity is 711410 . Complete the 2021 Form 1065 for ROCK the Ages LC with appropriate forms and schedules. Prepare Schedule K-1 for Ryan Ross. - If an amount box does not require an entry or the answer is zero, enter " 0 ". - Enter all amounts as positive numbers, unless otherwise instructed. - If required, round amounts to the nearest dollar. - Make realistic assumptions about any missing data. Fam 1065 a Services: 4a 1,400,000 b Capital c. Total, Add lines 4a and tb Income 5 Interest income (Loss) 6 Dividends and dividend equivalents: a Ordinary dividends b Qualified dividends 6b c Dividend equivalents 7 Royalties 8 Net short term capital gain (loss) (attach schedule D (Form 1065)) 9a Net long-term capital gain (loss) (attach Schedule D (Form 1065)) b collectibles (2896) uain (loss) c Unrecaptured section 1250 gain (attach statement) \begin{tabular}{|l|} \hline 9b \\ \hline 9c \\ \hline \end{tabular} \begin{tabular}{|l|l} \hline Ac & 1,400,000 \\ \hline 5 & 1,600 \\ \hline \end{tabular} 10 Net section 1231 gain (lost) (attach Form 4797) 11 Other income (loss) (see instructions) Trpe r 4b \begin{tabular}{|l|l} \hline ba & \\ \hline \end{tabular} 6c \begin{tabular}{|l|l} \hline 6 & \\ \hline 7 & \\ \hline 8 & \\ \hline 9a & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline octions & & & \\ \hline \multirow{6}{*}{\begin{tabular}{l} Alter- \\ native \\ Minimum \\ Tax \\ (AMT) \\ Items \end{tabular}} & & 17a & \\ \hline & & itb & \\ \hline & & 17c & \\ \hline & & 17d & \\ \hline & & 17e & \\ \hline & & 171 & \\ \hline \multirow{8}{*}{\begin{tabular}{l} Other \\ Infor \\ mation \end{tabular}} & & 18a & \\ \hline & & 18b & \\ \hline & & 18c & \\ \hline & & 19a & \\ \hline & & 19b & \\ \hline & & 20a & \\ \hline & & 20b & \\ \hline & & & \\ \hline \end{tabular} Week 6: Form 1065 Tax Return Simu Print item Fean 1065 9a Buildings and other deprediable assets b tres accumelated depredation 10 a Depletable arsets b Less accumulated depletion 11 Land (net of any amortization) 12a Intangible assets (amertizable onty) b Less accumulated amortization 13 Other assets (attach stmt) 14 Total assets tiabilities and Capital 15 Accounts parable 16 Morteages, notes, bonds payable in less than 1 year 17 Other current liabalies (attach stunt) seest s 18 All nohrecourse loans renthask