Part 3 of the tax return, for a S Corp.

Form 1120S Research Associates Gross receipts Cost of goods sold Dividend income Interest income Long-term capital loss Compensation of officers Salaries & wages Rents Property taxes Utilities Depreciation Charitable contributions Investment interest expense Book $1,000,000 (250,000) 50,000 20,000 (35,000) 785,000 Tax Return Adjustments (Sch. Ordinary Inc. (Page K) 1) 0 0 $0 (300,000) (120,000) (60,000) (10,000) (24,000) (100,000) (20,000) (12,000) (646,000) $139,000 Page 1 0 0 $0 Form Form 1120S Form 1120S Form 1120S Form 1120S Form 1120S Form 1120S Form 1120S Form 1120S Form 1120S Form 1120S Form 1120S Form 1120S Form 1120S Form 1120S Form 1120S Form 1120S Form 1120S Form 1120S Form 1120S Form 1125-A Sch. K-1 Sch. K-1 Sch. K-1 Sch. K-1 Sch. K-1 Sch. K-1 Sch. K-1 Sch. K-1 Sch. K-1 Sch. K-1 Sch. K-1 2012 Return Page Line 1 3 1 6 1 20 Sch K 4 Sch K 5a Sch K 5b Sch K 7 Sch K 8a Sch K 12a Sch K 12b Sch K 16a Sch K 16d Sch K 17a Sch L 15(d) Sch L 24(d) M-1 8 M-2 3a M-2 5a M-2 8a 1 2 part III 1 part III 4 part III 5a part III 5b part III 7 part III 8a part III 12A part III 12H part III 16A part III 16D part III 17A Entry 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 - Check figure $4,633,200 Enter your answers from your tax return in the appropriate spaces in column D. Enter all as positive numbers rounded to the nearest dollar. ACCT 346 Fall 2013 Part 3 -- Form 1120S During the year ended 12/31/12, Esscorp Embalming: Made distributions of $198,000 to Ms. Maine, and $22,000 to Dr. Badr. Paid officer's compensation of $200,000 to Ms. Maine (who devoted 33% of her time to the business) and $100,000 to Dr. Badr (who devoted 100% of his time to the business). Received exempt municipal interest income of $5,000. Received dividend income of $30,000 from Wonder Cure, Inc., (in which Embalming has a 30% ownership interest) and $20,000 from corporations in which Embalming has less than a 20% ownership interest. All dividends are qualified dividends. Paid no salaries/wages attributable to inventories. Also note that the owners had $373,500 (Ms. Maine) and $41,500 (Dr. Badr) in their capital accounts at the beginning of the year. The corporation's balance sheets and income statement are presented in Exhibits 5 and 6, respectively. Exhibit 5 Esscorp Embalming, Inc. Balance Sheet Years ended December 31, 2011 and 2012 Balances as of ASSETS Cash Inventory Depreciable assets (net) TOTAL ASSETS 12/31/12 $71,000 $100,000 $200,000 $371,000 LIABILITIES & RETAINED EARNINGS Accounts payable (inventory) Notes payable Common stock Retained earnings TOTAL LIABILITIES & RETAINED EARNINGS 1 12/31/11 $25,000 $150,000 $300,000 $475,000 $10,000 $25,000 $25,000 $415,000 1 $12,000 $0 $25,000 $334,000 $475,000 $371,000 Assume that the entire beginning balance is in AAA. 1 ACCT 346 Fall 2013 Exhibit 6 Esscorp Embalming, Inc. Income Statement Year ended December 31, 2012 Gross receipts Cost-of-Goods Sold Dividend Income Interest Income Capital losses $1,000,000 ($250,000) $50,000 $20,000 ($35,000) $785,000 Compensation of officers Salaries and wages Rents Property taxes Utilities Depreciation Charitable contributions Investment interest expense ($300,000) ($120,000) ($60,000) ($10,000) ($24,000) ($100,000) ($20,000) ($12,000) ($646,000) $139,000 Property Transactions Item Purchase** Price - Date Sale Price - Date 100 shares of CYA stock $3,000 - 1/1/00 $7,000 - 1/15/12 2,000 shares of ABZ stock $100,000 - 6/30/00 $54,000 - 6/29/12 City of LA Bonds $25,000 - 10/15/11 $22,000 - 2/14/12 220 $125,000 - 5/30/11 $135,000 - 10/31/12 **The taxpayer received 1099s for these transactions, but the basis was not reported to the IRS. 2 ACCT 346 Fall 2013 Required Use the information presented to complete the assigned pages of the corporation's Form 1120S and Schedule D. Also complete one Schedule K-1 (Form 1120S) for Ms. Maine. (You will not be filing a complete return.) Use PDF forms from the IRS web site. 3 Form 1120S Department of the Treasury Internal Revenue Service U.S. Income Tax Return for an S Corporation OMB No. 1545-0130 Do not file this form unless the corporation has filed or is attaching Form 2553 to elect to be an S corporation. Information about Form 1120S and its separate instructions is at www.irs.gov/form1120s. 2012 For calendar year 2012 or tax year beginning A S election effective date TYPE B Business activity code number (see instructions) OR PRINT , 2012, ending , 20 Name D Employer identification number Number, street, and room or suite no. If a P.O. box, see instructions. E Date incorporated City or town, state, and ZIP code F Total assets (see instructions) C Check if Sch. M-3 attached $ Yes No If \"Yes,\" attach Form 2553 if not already filed G Is the corporation electing to be an S corporation beginning with this tax year? (4) (3) (5) Name change Address change S election termination or revocation Final return (2) Amended return H Check if: (1) I Enter the number of shareholders who were shareholders during any part of the tax year . . . . . . . . . Caution. Include only trade or business income and expenses on lines 1a through 21. See the instructions for more information. 1a . . . . . . . . . . . . . . 1a . . . . . . . . . . . . . . 1b Balance. Subtract line 1b from line 1a . . . . . . . . . . . . . . . . . . . Cost of goods sold (attach Form 1125-A) . . . . . . . . . . . . . . . . . . Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . . Net gain (loss) from Form 4797, line 17 (attach Form 4797) . . . . . . . . . . . . Other income (loss) (see instructionsattach statement) . . . . . . . . . . . . . Total income (loss). Add lines 3 through 5 . . . . . . . . . . . . . . . . Compensation of officers . . . . . . . . . . . . . . . . . . . . . . . Salaries and wages (less employment credits) . . . . . . . . . . . . . . . . Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . . Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . Depreciation not claimed on Form 1125-A or elsewhere on return (attach Form 4562) . . . . Depletion (Do not deduct oil and gas depletion.) . . . . . . . . . . . . . . . Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . Pension, profit-sharing, etc., plans . . . . . . . . . . . . . . . . . . . . Employee benefit programs . . . . . . . . . . . . . . . . . . . . . . Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . Total deductions. Add lines 7 through 19 . . . . . . . . . . . . . . . . Ordinary business income (loss). Subtract line 20 from line 6 . . . . . . . . . . . Excess net passive income or LIFO recapture tax (see instructions) . . 22a Tax from Schedule D (Form 1120S) . . . . . . . . . . . 22b Add lines 22a and 22b (see instructions for additional taxes) . . . . . . . . . . . . 2012 estimated tax payments and 2011 overpayment credited to 2012 23a Tax deposited with Form 7004 . . . . . . . . . . . . 23b Credit for federal tax paid on fuels (attach Form 4136) . . . . . 23c Add lines 23a through 23c . . . . . . . . . . . . . . . . . . . . . . Estimated tax penalty (see instructions). Check if Form 2220 is attached . . . . . . Amount owed. If line 23d is smaller than the total of lines 22c and 24, enter amount owed . . Overpayment. If line 23d is larger than the total of lines 22c and 24, enter amount overpaid . . Enter amount from line 26 Credited to 2013 estimated tax Refunded Gross receipts or sales . Tax and Payments Deductions (see instructions for limitations) Income b Returns and allowances c 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 a b c 23 a b c d 24 25 26 27 22c 23d 24 25 26 27 Paid Preparer Use Only Date Signature of officer Print/Type preparer's name Preparer's signature Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. May the IRS discuss this return with the preparer shown below (see instructions)? Sign Here 1c 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Yes Title Date Check if self-employed Firm's name Firm's EIN Firm's address Phone no. For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11510H No PTIN Form 1120S (2012) Form 1120S (2012) Schedule B 1 2 3 4 Page 2 Other Information (see instructions) a c See the instructions and enter the: a Business activity Check accounting method: Yes No Cash b Accrual Other (specify) b Product or service At any time during the tax year, was any shareholder of the corporation a disregarded entity, a trust, an estate, or a nominee or similar person? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . At the end of the tax year, did the corporation: a Own directly 20% or more, or own, directly or indirectly, 50% or more of the total stock issued and outstanding of any foreign or domestic corporation? For rules of constructive ownership, see instructions. If \"Yes,\" complete (i) through (v) below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (i) Name of Corporation (ii) Employer Identification Number (if any) (iii) Country of Incorporation (iv) Percentage of Stock Owned (v) If Percentage in (iv) is 100%, Enter the Date (if any) a Qualified Subchapter S Subsidiary Election Was Made b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If \"Yes,\" complete (i) through (v) below . . . . . . . (i) Name of Entity (ii) Employer Identification Number (if any) (iv) Country of Organization (iii) Type of Entity (v) Maximum Percentage Owned in Profit, Loss, or Capital 5 a At the end of the tax year, did the corporation have any outstanding shares of restricted stock? . . . . . . . If \"Yes,\" complete lines (i) and (ii) below. (i) Total shares of restricted stock . . . . . . . . . (ii) Total shares of non-restricted stock . . . . . . . . b At the end of the tax year, did the corporation have any outstanding stock options, warrants, or similar instruments? If \"Yes,\" complete lines (i) and (ii) below. (i) Total shares of stock outstanding at the end of the tax year (ii) Total shares of stock outstanding if all instruments were executed 6 7 . . Has this corporation filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide information on any reportable transaction? . . . . . . . . . . . . . . . . . . . . . . . . Check this box if the corporation issued publicly offered debt instruments with original issue discount . . . . If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments. If the corporation: (a) was a C corporation before it elected to be an S corporation or the corporation acquired an asset with a basis determined by reference to the basis of the asset (or the basis of any other property) in the hands of a C corporation and (b) has net unrealized built-in gain in excess of the net recognized built-in gain from prior years, enter the net unrealized built-in gain reduced by net recognized built-in gain from prior years (see instructions) . . . . . . . . . . . . . . . $ $ 9 Enter the accumulated earnings and profits of the corporation at the end of the tax year. 10 Does the corporation satisfy both of the following conditions? a The corporation's total receipts (see instructions) for the tax year were less than $250,000 . . . . . . . . . . b The corporation's total assets at the end of the tax year were less than $250,000 . . . . . . . . . . . . If \"Yes,\" the corporation is not required to complete Schedules L and M-1. 8 11 During the tax year, did the corporation have any non-shareholder debt that was canceled, was forgiven, or had terms modified so as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . . If \"Yes,\" enter the amount of principal reduction $ 12 During the tax year, was a qualified subchapter S subsidiary election terminated or revoked? If \"Yes,\" see instructions 13 a Did the corporation make any payments in 2012 that would require it to file Form(s) 1099? . . . . . . . . . b If \"Yes,\" did the corporation file or will it file required Forms 1099? . . . . . . . . . . . . . . . . the . . . . Form 1120S (2012) Form 1120S (2012) Credits Deductions Income (Loss) Schedule K Ordinary business income (loss) (page 1, line 21) . . . . . . . . Net rental real estate income (loss) (attach Form 8825) . . . . . . Other gross rental income (loss) . . . . . . . . . . 3a Expenses from other rental activities (attach statement) . . 3b Other net rental income (loss). Subtract line 3b from line 3a . . . . Interest income . . . . . . . . . . . . . . . . . . Dividends: a Ordinary dividends . . . . . . . . . . . . . b Qualified dividends . . . . . . . . . . 5b 6 Royalties . . . . . . . . . . . . . . . . . . . . 7 Net short-term capital gain (loss) (attach Schedule D (Form 1120S)) . . 8 a Net long-term capital gain (loss) (attach Schedule D (Form 1120S)) . . b Collectibles (28%) gain (loss) . . . . . . . . . . . 8b c Unrecaptured section 1250 gain (attach statement) . . . . 8c 9 Net section 1231 gain (loss) (attach Form 4797) . . . . . . . . 10 Other income (loss) (see instructions) . . Type 11 Section 179 deduction (attach Form 4562) . . . . . . . . . . 12a Charitable contributions . . . . . . . . . . . . . . . b Investment interest expense . . . . . . . . . . . . . . c Section 59(e)(2) expenditures (1) Type d Other deductions (see instructions) . . . Type 13a Low-income housing credit (section 42(j)(5)) . . . . . . . . . b Low-income housing credit (other) . . . . . . . . . . . . c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468) d Other rental real estate credits (see instructions) Type e Other rental credits (see instructions) . . . Type Foreign Transactions Alternative Minimum Tax (AMT) Items . . . . . . . . . . . . 1 2 . . . . . . . . . . . . . . . . . . 3c 4 5a . . . . . . . . . . . . . . . . . . 6 7 8a . . . . . . 9 10 11 12a 12b . . . . . . . . . . . . . . . . . . (2) Amount 12c(2) 12d 13a 13b 13c 13d 13e 13f 13g . . . . . . . . . . . . . . . . . . . . . . . . Gross income from all sources . . . . . . . . . . . . . . . . Gross income sourced at shareholder level . . . . . . . . . . . . Foreign gross income sourced at corporate level d Passive category . . . . . . . . . . . . . . . . . . . . e General category . . . . . . . . . . . . . . . . . . . . f Other (attach statement) . . . . . . . . . . . . . . . . . . Deductions allocated and apportioned at shareholder level g Interest expense . . . . . . . . . . . . . . . . . . . . . h Other . . . . . . . . . . . . . . . . . . . . . . . . Deductions allocated and apportioned at corporate level to foreign source income i Passive category . . . . . . . . . . . . . . . . . . . . j General category . . . . . . . . . . . . . . . . . . . . k Other (attach statement) . . . . . . . . . . . . . . . . . . Other information l Total foreign taxes (check one): Paid Accrued . . . . . . . m Reduction in taxes available for credit (attach statement) . . . . . . . . n Other foreign tax information (attach statement) 15a Post-1986 depreciation adjustment . . . . . . . . . . . . . . . b Adjusted gain or loss . . . . . . . . . . . . . . . . . . . c Depletion (other than oil and gas) . . . . . . . . . . . . . . . d Oil, gas, and geothermal propertiesgross income . . . . . . . . . . e Oil, gas, and geothermal propertiesdeductions . . . . . . . . . . . f Other AMT items (attach statement) . . . . . . . . . . . . . . . 16a Tax-exempt interest income . . . . . . . . . . . . . . . . . b Other tax-exempt income . . . . . . . . . . . . . . . . . . c Nondeductible expenses . . . . . . . . . . . . . . . . . . d Distributions (attach statement if required) (see instructions) . . . . . . . e Repayment of loans from shareholders . . . . . . . . . . . . . . . . . . . . 14b 14c . . . . . . . . . 14d 14e 14f . . . . . . 14g . . . . . . . . . 14i 14j 14k . . . . . . 14l 14m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15a 15b 15c 15d 15e 15f 16a 16b 16c 16d 16e Alcohol and cellulosic biofuel fuels credit (attach Form 6478) . Other credits (see instructions) . . . . . Type Name of country or U.S. possession 3 Total amount 1 2 3a b c 4 5 f g 14a b c Items Affecting Shareholder Basis Page Shareholders' Pro Rata Share Items . . . 14h Form 1120S (2012) Form 1120S (2012) ReconOther ciliation Information Schedule K Page 17a b c d Investment income . . . . . . . . . . . . . . . Investment expenses . . . . . . . . . . . . . . Dividend distributions paid from accumulated earnings and profits Other items and amounts (attach statement) 18 Income/loss reconciliation. Combine the amounts on lines 1 through 10 in the far right column. From the result, subtract the sum of the amounts on lines 11 through 12d and 14l Schedule L Balance Sheets per Books . . . . . . . . . . . . . . . . . . . . . 17a 17b 17c . . . Beginning of tax year Assets (a) 1 2a b 3 4 5 6 7 8 9 10a b 11a b 12 13a b 14 15 Cash . . . . . . . . . . . . Trade notes and accounts receivable . . Less allowance for bad debts . . . . . Inventories . . . . . . . . . . U.S. government obligations . . . . . Tax-exempt securities (see instructions) . Other current assets (attach statement) . . Loans to shareholders . . . . . . . Mortgage and real estate loans . . . . Other investments (attach statement) . . Buildings and other depreciable assets . . Less accumulated depreciation . . . . Depletable assets . . . . . . . . Less accumulated depletion . . . . . Land (net of any amortization) . . . . . Intangible assets (amortizable only) . . . Less accumulated amortization . . . . Other assets (attach statement) . . . . Total assets . . . . . . . . . . Liabilities and Shareholders' Equity 16 17 18 19 20 21 22 23 24 25 26 27 Accounts payable . . . . . . . . . Mortgages, notes, bonds payable in less than 1 year Other current liabilities (attach statement) . . Loans from shareholders . . . . . . . Mortgages, notes, bonds payable in 1 year or more Other liabilities (attach statement) . . . . Capital stock . . . . . . . . . . . Additional paid-in capital . . . . . . . Retained earnings . . . . . . . . . Adjustments to shareholders' equity (attach statement) Less cost of treasury stock . . . . . . Total liabilities and shareholders' equity . . . . . . . . . . . . . . . . . . . . . 4 Total amount Shareholders' Pro Rata Share Items (continued) 18 End of tax year (b) (c) (d) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) Form 1120S (2012) Form 1120S (2012) Schedule M-1 Page 5 Reconciliation of Income (Loss) per Books With Income (Loss) per Return Note. Schedule M-3 required instead of Schedule M-1 if total assets are $10 million or moresee instructions 1 Net income (loss) per books 2 Income included on Schedule K, lines 1, 2, 3c, 4, 5a, 6, 7, 8a, 9, and 10, not recorded on books this year (itemize) 3 Expenses recorded on books this year not included on Schedule K, lines 1 through 12 and 14l (itemize): Depreciation $ Travel and entertainment $ a b 4 Add lines 1 through 3 Schedule M-2 . . . . . . . . . . . . . . 5 Income recorded on books this year not included on Schedule K, lines 1 through 10 (itemize): a Tax-exempt interest $ 6 Deductions included on Schedule K, lines 1 through 12 and 14l, not charged against book income this year (itemize): a Depreciation $ 7 Add lines 5 and 6 . . . . . 8 Income (loss) (Schedule K, line 18). Line 4 less line 7 Analysis of Accumulated Adjustments Account, Other Adjustments Account, and Shareholders' Undistributed Taxable Income Previously Taxed (see instructions) (a) Accumulated adjustments account 1 2 3 4 5 6 7 8 Balance at beginning of tax year . . . . . Ordinary income from page 1, line 21 . . . Other additions . . . . . . . . . . ( Loss from page 1, line 21 . . . . . . . ( Other reductions . . . . . . . . . . Combine lines 1 through 5 . . . . . . . Distributions other than dividend distributions Balance at end of tax year. Subtract line 7 from line 6 (b) Other adjustments account ) )( (c) Shareholders' undistributed taxable income previously taxed ) Form 1120S (2012) Form 1065 For calendar year 2012, or tax year beginning Department of the Treasury Internal Revenue Service D Employer identification number Research Associates Principal product or service Research Business code number C . Name of partnership Medical Research B , ending Information about Form 1065 and its separate instructions is at www.irs.gov/form1065. Principal business activity A OMB No. 1545-0099 U.S. Return of Partnership Income Print or type. 621510 75-3348679 Number, street, and room or suite no. If a P.O. box, see the instructions. E Date business started 512 S. Crouse 1/1/1989 State Podunk Center G Check applicable boxes: (1) Initial return H Check accounting method: (1) X Cash (6) F Total assets (see the . instructions) 50169 $ (2) Accrual (3) (3) Name change (4) Address change 371,000 Technical termination - also check (1) or (2) (2) Final return ZIP code IA City or town (5) Amended return Other (specify) 2 I Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year J Check if Schedules C and M-3 are attached . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Deductions (see the instructions for limitations) Income Caution. Include only trade or business income and expenses on lines 1a through 22 below. See the instructions for more information. 1a b c 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16a b 17 18 19 20 21 22 Gross receipts or sales . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 . . . . . . . . . . . . . . . . 1a . . . . Returns and allowances . . . . . . . . . . . . . . . . . . . 1b . . . . . . . . . . . . . . . . . . . . . . . . . . Balance. Subtract line 1b from line 1a . . . . . . . . . . . . . . . . . . . . . . . . . . 1c . . . . 1,000,000 . . . . . . . . . Cost of goods sold (attach Form 1125-A) . . . . . . . . . . . . . . . . . . . . . . . . . 2. . . . . .250,000 . . . . . . . Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . 750,000 . . . . . . . . Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) . . . . . . . 4 . . . . . . . . . . . . . Net farm profit (loss) (attach Schedule F (Form 1040)) . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Other income (loss) (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . 7 . . . . . . . . . . . . . Total income (loss). Combine lines 3 through 7 . . . . . . . . . . . . . . . . . . . . . .8 . . . . . 750,000. . . . . . . Salaries and wages (other than to partners) (less employment credits) . . . . . . . . . . . . . 9 . . . . . 120,000 . . . . . . . . Guaranteed payments to partners . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 . . . . . 300,000 . . . . . . . . Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 . . . . . . . . . . . . . Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 . . . . . . . . . . . . . Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 . . . . . 60,000 . . . . . . . . Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 . . . . . 10,000 . . . . . . . . Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15. . . . . . . . . . . . . Depreciation (if required, attach Form 4562) . . . . . . . . . . . . . . . . . 100,000 . . . . . . . . . . . . . . . . 16a . . . Less depreciation reported on Form 1125-A and elsewhere on return 16b 16c 100,000 Depletion (Do not deduct oil and gas depletion.) . . . . . . . . . . . . . . . . . . . . 17 . . . . . . . . . . . . . Retirement plans, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 . . . . . . . . . . . . . Employee benefit programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19. . . . . . . . . . . . . Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . 20 . . . . . .24,000 . . . . . . . Total deductions. Add the amounts shown in the far right column for lines 9 through 20 . . . . . .21 . . . . . . . . . . . . . 614,000 Ordinary business income (loss). Subtract line 21 from line 8 . . . . . . . . . . . . . . . .22. . . . . 136,000. . . . . . . . Sign Here Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than general partner or limited liability company member manager) is based on all information of which preparer has any knowledge. May the IRS discuss this return with the preparer shown below (see instructions)? Yes No Signature of general partner or limited liability company member manager Print/Type preparer's name Paid Preparer Use Only Date SELF-PREPARED RETURN Firm's name For Paperwork Reduction Act Notice, see separate instructions. Check self-employed if PTIN Firm's EIN Firm's address City HTA Date Preparer's signature Phone no. State ZIP code Form 1065 (2012) Form 1065 (2012) Schedule B 1 Research Associates 75-3348679 Page 2 Other Information Yes What type of entity is filing this return? Check the applicable box: a X Domestic general partnership b Domestic limited partnership c Domestic limited liability company d Domestic limited liability partnership e Foreign partnership f No Other At any time during the tax year, was any partner in the partnership a disregarded entity, a partnership (including an entity treated as a partnership), a trust, an S corporation, an estate (other than an estate of a deceased partner), or a nominee or similar person? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X . . . . 3 At the end of the tax year: a Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization, or any foreign government own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If "Yes," attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership . . . . . . . . . . . . . . . . . . . . X . . . . b Did any individual or estate own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If "Yes," attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X . . . . . . 4 At the end of the tax year, did the partnership: a Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation? For rules of constructive ownership, see instructions. If "Yes," complete (i) through (iv) below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X . . . . 2 (i) Name of Corporation (ii) Employer Identification Number (if any) (iii) Country of Incorporation (iv) Percentage Owned in Voting Stock b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If "Yes," complete (i) through (v) below . . . . . . . . . . . X (i) Name of Entity (ii) Employer Identification Number (if any) (iii) Type of Entity (iv) Country of Organization (v) Maximum Percentage Owned in Profit, Loss, or Capital Yes 5 6 a b c d 7 8 9 10 No Did the partnership file Form 8893, Election of Partnership Level Tax Treatment, or an election statement under section 6231(a)(1)(B)(ii) for partnership-level tax treatment, that is in effect for this tax year? See Form 8893 for more details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .X . . . Does the partnership satisfy all four of the following conditions? The partnership's total receipts for the tax year were less than $250,000. The partnership's total assets at the end of the tax year were less than $1 million. Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return. The partnership is not filing and is not required to file Schedule M-3 . . . . . . . . . . . . . . . . . . . . . . . . . X . . . . If "Yes," the partnership is not required to complete Schedules L, M-1, and M-2; Item F on page 1 of Form 1065; or Item L on Schedule K-1. Is this partnership a publicly traded partnership as defined in section 469(k)(2)? . . . . . . . . . . . . . . . . . . X. . . . . . During the tax year, did the partnership have any debt that was cancelled, was forgiven, or had the terms modified so as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . . . . . . . . . . . . . . X . . . . Has this partnership filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide information on any reportable transaction? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .X . . . . At any time during calendar year 2012, did the partnership have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account)? See the instructions for exceptions and filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts. If "Yes," enter the name of the foreign country. X Form 1065 (2012) Form 1065 (2012) Schedule B Research Associates 75-3348679 Page 3 Other Information (continued) Yes At any time during the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If "Yes," the partnership may have to file Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. See instructions . . . . . . . . . . . . . 12a Is the partnership making, or had it previously made (and not revoked), a section 754 election? . . . . . . . . . . See instructions for details regarding a section 754 election. b Did the partnership make for this tax year an optional basis adjustment under section 743(b) or 734(b)? If "Yes," attach a statement showing the computation and allocation of the basis adjustment. See instructions . . . . . . . . c Is the partnership required to adjust the basis of partnership assets under section 743(b) or 734(b) because of a substantial built-in loss (as defined under section 743(d)) or substantial basis reduction (as defined under section 734(d))? If "Yes," attach a statement showing the computation and allocation of the basis adjustment. See instructions. 13 Check this box if, during the current or prior tax year, the partnership distributed any property received in a like-kind exchange or contributed such property to another entity (other than disregarded entities wholly-owned by the partnership throughout the tax year) . . . . . . . . . . . . . . . . . . . . . . . . . No 11 . . . . . . . . X. . . . . . . . X. . . . . . X . . . . . . . . At any time during the tax year, did the partnership distribute to any partner a tenancy-in-common or other undivided interest in partnership property? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X. . . . . . 15 If the partnership is required to file Form 8858, Information Return of U.S. Persons With Respect To Foreign Disregarded Entities, enter the number of Forms 8858 attached. See instructions 16 Does the partnership have any foreign partners? If "Yes," enter the number of Forms 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, filed for this partnership. X 0 17 Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return. 18a Did you make any payments in 2012 that would require you to file Form(s) 1099? See instructions . . . . . . . . . . X. . . . . . b If "Yes," did you or will you file required Form(s) 1099? . . . . . . . . . . . . . . . . . . . . . . . . . . . X. . . . . . . 19 Enter the number of Form(s) 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations, attached to this return. 20 Enter the number of partners that are foreign governments under section 892. 14 Designation of Tax Matters Partner (see instructions) Enter below the general partner or member-manager designated as the tax matters partner (TMP) for the tax year of this return: Enter the Tax Matters Partner number on the 1065 K-1, 'Global Info' tab. Name of designated TMP If the TMP is an entity, name of TMP representative Address of designated TMP Identifying number of TMP Phone number of TMP Form 1065 (2012) 7 8 9a b c 10 11 75-3348679 Page 4 Total amount Ordinary business income (loss) (page 1, line 22) . . . . . . . . . . . . . . . . . . . 1 . . . . 136,000 . . . . . . . . Net rental real estate income (loss) (attach Form 8825) . . . . . . . . . . . . . . . . . 2 . . . . . . . . . . . . Other gross rental income (loss) . . . . . . . . . . . . . . . . 3a . . . . . . . . . . . . . . . . . . . . . . . Expenses from other rental activities (attach statement) . . . . . . . 3b . . . . . . . . . . . . . . . . . . . . . . Other net rental income (loss). Subtract line 3b from line 3a . . . . . . . . . . . . . . . 3c . . . . . . . 0 . . . . . . Guaranteed payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . 300,000 . . . . . . . . Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 . . . . .15,000 . . . . . . . Dividends: a Ordinary dividends . . . . . . . . . . . . . . . . . . . . . . . . . .6a . . . . 50,000 . . . . . . . . b Qualified dividends . . . . . . . . . . . . . . . 6b . . . . . . . . . . . . . . . . . . . . . . . 50,000 Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 . . . . . . . . . . . . Net short-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . . . . . 8 . . . . -3,000 . . . . . . . . Net long-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . . . . . 9a . . . . -32,000 . . . . . . . . Collectibles (28%) gain (loss) . . . . . . . . . . . . . . . . . 9b. . . . . . . . . . . . . . . . . . . . . . . Unrecaptured section 1250 gain (attach statement) . . . . . . . . . 9c . . . . . . . . . . . . . . . . . . . . . . Net section 1231 gain (loss) (attach Form 4797) . . . . . . . . . . . . . . . . . . . . 10 . . . . . . . . . . . . . Other income (loss) (see instructions) Type 11 12 13a b c d Section 179 deduction (attach Form 4562) . . . . . . . . . . . . . . . . . . . . . . 12 . . . . . . . . . . . . Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13a . . . . 20,000 . . . . . . . . Investment interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . 13b . . . . 12,000. . . . . . . . . Section 59(e)(2) expenditures: (1) Type (2) Amount 13c(2) Other deductions (see instructions) Type 13d 14a b c 15a b c d e f Net earnings (loss) from self-employment . . . . . . . . . . . . . . . . . . . . . . 14a. . . . 436,000 . . . . . . . . . Gross farming or fishing income . . . . . . . . . . . . . . . . . . . . . . . . . . 14b . . . . . . . . . . . . Gross nonfarm income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14c . . . 750,000 . . . . . . . . . . Low-income housing credit (section 42(j)(5)) . . . . . . . . . . . . . . . . . . . . . 15a. . . . . . . . . . . . . Low-income housing credit (other) . . . . . . . . . . . . . . . . . . . . . . . . . 15b . . . . . . . . . . . . . Qualified rehabilitation expenditures (rental real estate) (attach Form 3468) . . . . . . . . . 15c . . . . . . . . . . . . Other rental real estate credits (see instructions) Type 15d Other rental credits (see instructions) Type 15e Other credits (see instructions) Type 15f Form 1065 (2012) Other Information Alternative Minimum Tax (AMT) Items Foreign Transactions Credits SelfEmploy- Deductions ment Income (Loss) Schedule K 1 2 3a b c 4 5 6 Research Associates Partners' Distributive Share Items 16a Name of country or U.S. possession b Gross income from all sources . . . . . . . . . . . . . . . . . . . . . . . . . . 16b . . . . . . . . . . . . . c Gross income sourced at partner level . . . . . . . . . . . . . . . . . . . . . . . 16c . . . . . . . . . . . . . Foreign gross income sourced at partnership level d Passive category e General category f Other 16f Deductions allocated and apportioned at partner level g Interest expense h Other . . . . . . . . . . . . . . . . . . . . . . . . . . . 16h Deductions allocated and apportioned at partnership level to foreign source income i Passive category j General category k Other 16k l Total foreign taxes (check one): Paid Accrued . . . . . . . . . . . . . . 16l. . . . . . . . . . . . . m Reduction in taxes available for credit (attach statement) . . . . . . . . . . . . . . . . 16m . . . . . . . . . . . . . n Other foreign tax information (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17a Post-1986 depreciation adjustment . . . . . . . . . . . . . . . . . . . . . . . . 17a . . . . . . . . . . . . . b Adjusted gain or loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17b . . . . . . . . . . . . . c Depletion (other than oil and gas) . . . . . . . . . . . . . . . . . . . . . . . . . 17c . . . . . . . . . . . . . d Oil, gas, and geothermal propertiesgross income . . . . . . . . . . . . . . . . . . 17d . . . . . . . . . . . . . e Oil, gas, and geothermal propertiesdeductions . . . . . . . . . . . . . . . . . . . 17e . . . . . . . . . . . . . f Other AMT items (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . 17f . . . . . . . . . . . . . 18a Tax-exempt interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18a 5,000 b Other tax-exempt income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18b c Nondeductible expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18c . . . . . . . . . . . . 19a Distributions of cash and marketable securities . . . . . . . . . . . . . . . . . . . . 19a . . . . 220,000 . . . . . . . . b Distributions of other property . . . . . . . . . . . . . . . . . . . . . . . . . . .19b . . . . . . . . . . . . 20a Investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,000 . . . . 20a . . . b Investment expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20b . . . . . . . . . . . . c Other items and amounts (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Form 1065 (2012) Form 1065 (2012) Research Associates 75-3348679 Page 5 Analysis of Net Income (Loss) Net income (loss). Combine Schedule K, lines 1 through 11. From the result, subtract the sum of Schedule K, lines 12 through 13d, and 16l . . . . . . . . . . . . . . . . . . . . . . . . . . 1. . . . . 434,000. . . . . . . . 2 Analysis by (ii) Individual (iii) Individual (v) Exempt (vi) (i) Corporate (iv) Partnership (active) (passive) organization Nominee/Other partner type: a General partners 434,000 b Limited partners 1 Schedule L 1 2a b 3 4 5 6 7a b 8 9a b 10a b 11 12a b 13 14 15 16 17 18 19a b 20 21 22 3 4 a b 5 Beginning of tax year End of tax year (a) (b) (c) (d) Assets Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25,000 . . . . . . . . . . . . . 71,000 . . . . . . . . Trade notes and accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less allowance for bad debts . . . . . . . . . . . . . . . . . . . . . . . . 0 . . . . . . . . . . . . . . . 0 . . . . Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000 . . . . . . . . . . . . 100,000. . . . . . . . . . U.S. government obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tax-exempt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other current assets (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Loans to partners (or persons related to partners) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mortgage and real estate loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other investments (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Buildings and other depreciable assets . . . . . . . . . . 300,000 . . . . . . . . . . . . . 200,000 . . . . . . . . . . . . . . . . . Less accumulated depreciation . . . . . . . . . . . . . . . . . . . . . 300,000 . . . . . . . . . . . . 200,000. . . . . . . . . . Depletable assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less accumulated depletion . . . . . . . . . . . . . . . . . . . . . . . . . 0 . . . . . . . . . . . . . . . 0 . . . . Land (net of any amortization) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Intangible assets (amortizable only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less accumulated amortization . . . . . . . . . . . . . . . . . . . . . . . .0 . . . . . . . . . . . . . . . 0. . . . Other assets (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 475,000. . . . . . . . . . . . . 371,000 . . . . . . . . . Liabilities and Capital Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . .10,000 . . . . . . . . . . . . . 12,000 . . . . . . . . Mortgages, notes, bonds payable in less than 1 year 25,000 Other current liabilities (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . All nonrecourse loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Loans from partners (or persons related to partners) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mortgages, notes, bonds payable in 1 year or more Other liabilities (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Partners' capital accounts . . . . . . . . . . . . . . . . . . . . . . . 440,000 . . . . . . . . . . . . . . . . . . . . . . 359,000 Total liabilities and capital . . . . . . . . . . . . . . . . . . . . . . . 475,000 . . . . . . . . . . . . . . . . . . . . . . 371,000 Schedule M-1 1 2 Balance Sheets per Books Reconciliation of Income (Loss) per Books With Income (Loss) per Return Note. Schedule M-3 may be required instead of Schedule M-1 (see instructions). Net income (loss) per books . . . . . . . . . . .139,000 .6 . Income recorded . .books this year not . . . . . . . . . . . . . . . . . . . . . . . on . . . . . . included on Schedule K, lines 1 through 11 (itemize): Income included on Schedule K, lines 1, 2, 3c, 5, 6a, 7, 8, 9a, 10, and 11, not recorded on a Tax-exempt interest $ 5,000 books this year (itemize): 0 5,000 Guaranteed payments (other than health 7 Deductions included on Schedule K, lines 1 insurance) . . . . . . . . . . . . . . . . . .300,000 . . through .13d, .and 16l, not . . . . . . . . . . . . . . . . . . . . . . . . . . . . . charged Expenses recorded on books this year not against book income this year (itemize): included on Schedule K, lines 1 through a Depreciation $ 13d, and 16l (itemize): 0 Depreciation $ 8 Add lines 6 and 7 . . . . . . . . . . . . . . . 5,000. . . . . Travel and entertainment $ 0 9 Income (loss) (Analysis of Net Income Add lines 1 through 4 . . . . . . . . . . . . . 439,000 . . (Loss), line .1). Subtract . . 8 from line .5 . . . . . . . . . . .434,000 . . . . . . . . . . . . . . . . . line . . . . . .. .. . Schedule M-2 Analysis of Partners' Capital Accounts 1 Balance at beginning of year . . 2 Capital contributed: a Cash . b Property 3 Net income (loss) per books . . 4 Other increases (itemize): 5 Add lines 1 through 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 440,000 . . . . . . . . .139,000 . . . 0 . . . . . . . . 579,000 . . . . . . Distributions: . . a. Cash . . . . . . . . . . . . . . . . . . . . . . .220,000. . . . . . 6 . . . . . . . . .. .. . . . . . . . . . . b Property . . . . . . . . . . . . . . . . . . . . . .7 . Other .decreases (itemize): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Add lines 6 and 7 . . . . . . . . . . . . . . 220,000. . . . . . 9 . Balance at end . year. Subtract .line 8.from .line 5. . . . .359,000 . . . . . . . . of . . . . . . . . . . . Form 1065 (2012) Form 1125-A Cost of Goods Sold (Rev. December 2012) Department of the Treasury Internal Revenue Service OMB No. 1545-2225 Attach to Form 1120, 1120-C, 1120-F, 1120S, 1065, or 1065-B. Information about Form 1125-A and its instructions is at www.irs.gov/form1125a. Name Employer identification number Research Associates Inventory at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cost of labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Additional section 263A costs (attach schedule) . . . . . . . . . . . . . . . . . . . Other costs (attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . Total. Add lines 1 through 5 . . . . . . . . . . . . . . . . . . . . . . . . . . Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cost of goods sold. Subtract line 7 from line 6. Enter here and on Form 1120, page 1, line 2 or the appropriate line of your tax return (see instructions) . . . . . . . . . . . . . . . 9 a Check all methods used for valuing closing inventory: 1 2 3 4 5 6 7 8 75-3348679 . . . . . . . . . . . . . . . . . . . . . . 1. . . . . 2 . 3 . . . 4. . . 5. . . 6 . . . 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000. . . . . . . . 200,000 . . . . . . . . . . . . 350,000 . . . . 100,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 . . . . . . . 250,000 . . . . . . . . . . . (i) X Cost (ii) Lower of cost or market (iii) Other (Specify method used and attach explanation.) b Check if there was a writedown of subnormal goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) . . . . . . . . . . . . . . . . . . d If the LIFO inventory method was used for this tax year, enter amount of closing inventory computed under LIFO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9d . . . . . . . . . . . . . . . . . . . . . . e If property is produced or acquired for resale, do the rules of section 263A apply to the entity (see instructions)? . . . . Yes . . X .No . . . . . f Was there any change in determining quantities, cost, or valuations between opening and closing inventory? If "Yes," attach explanation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .X . No . . . . . . Yes . For Paperwork Reduction Act Notice, see instructions. HTA Form 1125-A (Rev. 12-2012) Form 8949 Department of the Treasury Internal Revenue Service Sales and Other Dispositions of Capital Assets Information about Form 8949 and its separate instructions is at www.irs.gov/form8949. File with your Schedule D to list your transactions for lines 1, 2, 3, 8, 9, and 10 of Schedule D. OMB No. 1545-0074 Attachment Sequence No. Name(s) shown on return Research Associates 12A Social security number or taxpayer identification number 75-3348679 Most brokers issue their own substitute statement instead of using Form 1099-B. They also may provide basis information (usually your cost) to you on the statement even if it is not reported to the IRS. Before you check Box A, B, or C below, determine whether you received any statement(s) and, if so, the transactions for which basis was reported to the IRS. Brokers are required to report basis to the IRS for most stock you bought in 2011 or later. Part I Short-Term. Transactions involving capital assets you held one year or less are short term. For long-term transactions, see page 2. You must check Box A, B, or C below. Check only one box. If more than one box applies for your short-term transactions, complete a separate Form 8949, page 1, for each applicable box. If you have more short-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need. (A) Short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS X (B) Short-term transactions reported on Form(s) 1099-B showing basis was not reported to the IRS (C) Short-term transactions not reported to you on Form 1099-B 1 (a) Description of property (Example: 100 sh. XYZ Co.) City of LA Bonds (b) Date acquired (Mo., day, yr.) (c) Date sold or disposed (Mo., day, yr.) 10/15/2011 (d) Proceeds (sales price) (see instructions) 2/14/2012 Adjustment, if any, to gain or loss. (e) If you enter an amount in column (g), (h) Cost or other basis. enter a code in column (f). Gain or (loss). See the Note below See the separate instructions. Subtract column (e) and see Column (e) from column (d) and (f) (g) in the separate combine the result Code(s) from Amount of instructions with column (g) instructions adjustment 22,000 25,000 22,000 25,000 -3,000 2 Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract negative amounts). Enter each total here and include on your Schedule D, line 1 (if Box A above is checked), line 2 (if Box B above is checked), or line 3 (if Box C above is checked) . 0 -3,000 Note. If you checked Box A above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an adjustment in column (g) to correct the basis. See Column (g) in the separate instructions for how to figure the amount of the adjustment. For Paperwork Reduction Act Notice, see your tax return instructions. HTA Form 8949 (2012) Form 8949 (2012) Attachment Sequence No. 12A Page Name(s) shown on return. (Name and SSN or taxpayer identification no. not required if shown on other side.) Research Associates 2 Social security number or taxpayer identification number 75-3348679 Most brokers issue their own substitute statement instead of using Form 1099-B. They also may provide basis information (usually your cost) to you on the statement even if it is not reported to the IRS. Before you check Box A, B, or C below, determine whether you received any statement(s) and, if so, the transactions for which basis was reported to the IRS. Brokers are required to report basis to the IRS for most stock you bought in 2011 or later. Part II Long-Term. Transactions involving capital assets you held more than one year are long term. For short-term transactions, see page 1. You must check Box A, B, or C below. Check only one box. If more than one box applies for your long-term transactions, complete a separate Form 8949, page 2, for each applicable box. If you have more long-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need. (A) Long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS X (B) Long-term transactions reported on Form(s) 1099-B showing basis was not reported to the IRS (C) Long-term transactions not reported to you on Form 1099-B 3 (b) Date acquired (Mo., day, yr.) (c) Date sold or disposed (Mo., day, yr.) 100 shares of CYA stock 1/1/2000 1/15/2012 7,000 3,000 4,000 2,000 shares of ABZ stock 6/30/2000 6/29/2012 54,000 100,000 -46,000 State of MI Bonds 5/30/2011 10/31/2012 135,000 125,000 10,000 196,000 228,000 (a) Description of property (Example: 100 sh. XYZ Co.) (d) Proceeds (sales price) (see instructions) Adjustment, if any, to gain or loss. (e) If you enter an amount in column (g), (h) Cost or other basis. enter a code in column (f). Gain or (loss). See the Note below See the separate instructions. Subtract column (e) and see Column (e) from column (d) and (f) (g) in the separate combine the result Code(s) from Amount of instructions with column (g) instructions adjustment 4 Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract negative amounts). Enter each total here and include on your Schedule D, line 8 (if Box A above is checked), line 9 (if Box B above is checked), or line 10 (if Box C above is checked) 0 -32,000 Note. If you checked Box A above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an adjustment in column (g) to correct the basis. See Column (g) in the separate instructions for how to figure the amount of the adjustment. Form 8949 (2012) SCHEDULE B-1 (Form 1065) (Rev. December 2011) Information on Partners Owning 50% or More of the Partnership Department of the Treasury Internal Revenue Service OMB No. 1545-0099 Attach to Form 1065. See instructions on back. Name of partnership Employer identification number (EIN) Research Associates 75-3348679 Entities Owning 50% or More of the Partnership (Form 1065, Schedule B, Question 3a) Part I Complete columns (i) through (v) below for any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, tax-exempt organization, or any foreign government that owns, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership (see instructions). (i) Name of Entity (ii) Employer Identification Number (if any) (iii) Type of Entity (iv) Country of Organization (v) Maximum Percentage Owned in Profit, Loss, or Capital Individuals or Estates Owning 50% or More of the Partnership (Form 1065, Schedule B, Question 3b) Part II Complete columns (i) through (iv) below for any individual or estate that owns, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership (see instructions). (i) Name of Individual or Estate Cindy Maine (ii) Identifying Number (if any) 001-02-0012 (iii) Country of Citizenship (see instructions) United States For Paperwork Reduction Act Notice, see the Instructions for Form 1065. HTA (iv) Maximum Percentage Owned in Profit, Loss, or Capital 90.000% Schedule B-1 (Form 1065) (Rev. 12-2011) SCHEDULE D (Form 1065) Department of the Treasury Internal Revenue Service OMB No. 1545-0099 Capital Gains and Losses Attach to Form 1065 or Form 8865. Use Form 8949 to list your transactions for lines 1, 2, 3, 8, 9, and 10. Information about Schedule D (Form 1065) and its separate instructions is at www.irs.gov/form1065. Name of partnership Employer identification number Research Associates Part I Complete Form 8949 before completing line 1, 2, or 3. This form may be easier to complete if you round off cents to whole dollars. 1 2 3 75-3348679 Short-Term Capital Gains and LossesAssets Held One Year or Less Short-term totals from all Forms 8949 with box A checked in Part I Short-term totals from all Forms 8949 with box B checked in Part I Short-term totals from all Forms 8949 with box C checked in Part I (d) Proceeds (sales price) from Form(s) 8949, Part I, line 2, column (d) (e) Cost or other basis from Form(s) 8949, Part I, line 2, column (e) (g) Adjustments to gain or loss from Form(s) 8949, Part I, line 2, column (g) (h) Gain or (loss). Subtract column (e) from column (d) and combine the result with column (g) 0 22,000 25,000 -3,000 0 4 Short-term capital gain from installment sales from Form 6252, line 26 or 37 . . . . . . . . . . . . . . . . . . . . . . . . 4 5 Short-term capital gain or (loss) from like-kind exchanges from Form 8824 . . . . . . . . . . . 5 . . . . . . . . . . . . . . 6 Partnership's share of net short-term capital gain (loss), including specially allocated short-term capital gains (losses), from other partnerships, estates, and trusts . . . . . . . . . . . . . . .6 . . . . . . . . . . . . . . 7 Net short-term capital gain or (loss). Combine lines 1 through 6 in column (h). Enter here and on Form 1065, Schedule K, line 8 or 11; or Form 8865, Schedule K, line 8 or 11 . . . . . . . . . 7. . . . . . . . -3,000 . . . . . . Part II Long-Term Capital Gains and LossesAssets Held More Than One Year Complete Form 8949 before completing line 8, 9, or 10. This form may be easier to complete if you round off cents to whole dollars. Long-term totals from all Forms 8949 with box A checked in Part I 9 Long-term totals from all Forms 8949 with box B checked in Part I 10 Long-term totals from all Forms 8949 with box C checked in Part I (d) Proceeds (sales price) from Form(s) 8949, Part II, line 4, column (d) (e) Cost or other basis from Form(s) 8949, Part II, line 4, column (e) (g) Adjustments to gain or loss from Form(s) 8949, Part II, line 4, column (g) (h) Gain or (loss). Subtract column (e) from column (d) and combine the result with column (g) 8 0 196,000 228,000 -32,000 0 11 Long-term capital gain from installment sales from Form 6252, line 26 or 37 . . . . . . . . . . 11 . . . . . . . . . . . . . . . 12 Long-term capital gain or (loss) from like-kind exchanges from Form 8824 . . . . . . . . . . . 12 . . . . . . . . . . . . . . 13 Partnership's share of net long-term capital gain (loss), including specially allocated long-term capital gains (losses), from other partnerships, estates, and trusts . . . . . . . . . . . . . . 13 . . . . . . . . . . . . . . . 14 Capital gain distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14. . . . . . . . . . . . . . 15 Net long-term capital gain or (loss). Combine lines 8 through 14 in column (h). Enter here and on Form 1065, Schedule K, line 9a or 11; or Form 8865, Schedule K, line 9a or 11 . . . . . . . . 15 . . . . . . -32,000 . . . . . . . . For Paperwork Reduction Act Notice, see the Instructions for Form 1065. HTA Schedule D (Form 1065) 2012 651112 X Schedule K-1 (Form 1065) Final K-1 Part III Department of the Treasury Internal Revenue Service 1 For calendar year 2012, or tax year beginning Amended K-1 Partner's Share of Current Year Income, Deductions, Credits, and Other Items Ordinary business income (loss) 2 17 Alternative minimum tax (AMT) items Tax-exempt income and nondeductible expenses Ordinary dividends Qualified dividends 7 Royalties 8 Net short-term capital gain (loss) 9a Net long-term capital gain (loss) 200,000 13,500 Partnership's name, address, city, state, and ZIP code Research Associates 512 S. Crouse Podunk Center C Foreign transactions Interest income Partnership's employer identification number 75-3348679 B 16 Guaranteed payments 6b Information About the Partnership Other net rental income (loss) 6a Part I A 3 4 , 20 Credits Net rental real estate income (loss) 5 ending 15 122,400 , 2012 Partner's Share of Income, Deductions, Credits, etc. See back of form and separate instructions. OMB No. 1545-0099 45,000 IA 50169 45,000 IRS Center where partnership filed return Ogden, UT 84201-0011 Check if this is a publicly traded partnership (PTP) D -2,700 Part II E Information About the Partner -28,800 Partner's identifying number 001-02-0012 F 9b Collectibles (28%) gain (loss) 9c Unrecaptured section 1250 gain 10 Net section 1231 gain (loss) 18 11 Other income (loss) A Partner's name, address, city, state, and ZIP code Cindy Maine 512 S. Crouse Podunk Center, IA 50169 G X General partner or LLC member-manager Limited partner or other LLC member H X Domestic partner 4,500 Foreign partner I1 What type of entity is this partner? (see instructions) I2 If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here 19 Distributions (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . 12 . Section.179 deduction . . . . . . . . A. . . . . . . . . . . . . . . . . . . . . J Partner's share of profit, loss, and capital (see instructions): Beginning Ending Profit Loss Capital K 90.000000% 90.000000% 90.000000% 13 90.000000% 90.000000% 90.000000% 198,000 Other deductions A 18,000 H 10,800 A 20 Other information 58,500 F 6a . . . . . . . . . $ . . . . . . . . . . . . 14 . Self-employment earnings (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Qualified nonrecourse financing . . . $ . . . . . . . . . . . . A . . . . . . . . . .322,400 . . . . . . . . . . . . . . . . . . . . Recourse . . . . . . . . . . $ . . . . . . . . 10,800 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C 675,000 Partner's capital account analysis: *See attached statement for additional information. Beginning capital account . . . . . $. . . . . . . . 396,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Capital contributed during the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ . . . Current year increase (decrease) . . . $ . . . . . . . . 125,100 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Withdrawals & distributions . . . . .$ .( . . . . . . 198,000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ending capital account . . . . . . . . $ . . . . . . . . . . 323,100. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Partner's share of liabilities at year end: L X Tax basis GAAP Section 704(b) book Other (explain) M For IRS Use Only Nonrecourse Did the partner contribute property with a built-in gain or loss? X No Yes If "Yes," attach statement (see instructions) For Paperwork Reduction Act Notice, see Instructions for Form 1065. HTA IRS.gov/form1065 Schedule K-1 (Form 1065) 2012 X Print this statement Check to suppress codes and amounts that are listed on the 'Form' page. Cindy Maine 001-02-0012 K-1 Statement (Sch K-1, Form 1065) Line 13 - Deductions A Code A - Cash contributions (50%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . A . . . . 18,000. . . . . . . . . H Code H - Investment interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . H. . . . .10,800 . . . . . . . . Line 14 - Self-Employment A Code A - Net earnings (loss) from self-employment . . . . . . . . . . . . . . . . . . . . . . A . . . . 322,400 . . . . . . . . . C Code C - Gross non-farm income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .675,000 . . . . . C . . . Line 18 - Tax-exempt income and nondeductible expenses A Code A - Tax-exempt interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . .A . . . . . 4,500 . . . . . . . Line 19 - Distributions A Code A - Cash and marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . A . . . 198,000. . . . . . . . . . Line 20 - Other Information A Code A - Investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A . . . . 58,500. . . . . . . . . F Code F - Recapture of low-income housing credit (section 42(j)(5)) . . . . . . . . . . . . . . . . F 6a