Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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.

image text in transcribed

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

image text in transcribed

Question 2:

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

image text in transcribed

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding And Auditing IT Systems Volume 1

Authors: Young-Woon Min

2nd Edition

978-1257124084

More Books

Students also viewed these Accounting questions

Question

Describe how to train managers to coach employees. page 404

Answered: 1 week ago

Question

Discuss the steps in the development planning process. page 381

Answered: 1 week ago