On Jan.1 of the current year, Mr. Radon and Mr. Helix established operations of their partnership Smackey Technologies, a manufacturer of electronic components. Both partners actively participate equally. Smackeys income statement for the current calendat year, is presented below.

Question 1: Enter the appropriate values in the 1065 tax form below.

Question 2:

Using the data provided in the tab titled Information, enter the approriate values in the schedule K and K-1 below.

Sales Cost of sales Gross profit $1,000,000 (410,000) 590,000 Operating expenses Salaries and wages (excluding partners) Guaranteed payments to partners Depreciation of machinery and equipment Partners' health insurance premiums Contributions to pension plans (excluding partners) Contributions to Keogh pension plan Charitable contributions 165,000 100,000 145,000 10,000 12,000 6,000 460,000 130,000 Operating (ordinary) income Other income (losS): Interest 2,500 Rental income (net) Total Total net income Additional informatio Radon and Helix share profits and losses equally Guaranteed payments to partners are for services rendered and are determined without regard to partnership income. In addition to the guaranteed payments, Radon and Helix each drew $35,000. These drawings were unrelated to the guaranteed payments Guaranteed payments and partners' health insurance premiums are divided equally between Radon and Helix. The charitable contribution was made in cash to a qualified charitable organization Sales Cost of sales Gross profit $1,000,000 (410,000) 590,000 Operating expenses Salaries and wages (excluding partners) Guaranteed payments to partners Depreciation of machinery and equipment Partners' health insurance premiums Contributions to pension plans (excluding partners) Contributions to Keogh pension plan Charitable contributions 165,000 100,000 145,000 10,000 12,000 6,000 460,000 130,000 Operating (ordinary) income Other income (losS): Interest 2,500 Rental income (net) Total Total net income Additional informatio Radon and Helix share profits and losses equally Guaranteed payments to partners are for services rendered and are determined without regard to partnership income. In addition to the guaranteed payments, Radon and Helix each drew $35,000. These drawings were unrelated to the guaranteed payments Guaranteed payments and partners' health insurance premiums are divided equally between Radon and Helix. The charitable contribution was made in cash to a qualified charitable organization