Partnership (Form 1065 Spring 2017 Michael Fox, Rachel Allen, and Hannah Rowland are owners in "FAR, LLC" a limited liability company engaged in commercial office design services. Pertinent information regarding FAR, LLC. is summarized below. Social security numbers are as follows; Michael-623-98-0123; Rachel 410-63-4297; and Hannah -855-21-1750. Michael is the Tax Matters Partner of the company. The address of the company is 2835 Lake View Drive, Charlotte, NC 28130 The company was formed and began operations on January 1,2012. The business code is 541400. The federal identification number is 67-1234598 The company uses the cash method of accounting and the calendar year for reporting. The company purchased a new office computer system on December 12, 2016. They desire to expense this asset under $179 for tax purposes. The company uses straight-line depreciation for financial reporting and recorded a total of S9,002 depreciation for book purposes (which includes depreciation on the new computer system) The company uses MACRS for its machinery and equipment and recorded S14,602 in depreciation for its other fixed assets (using MACRS). Assume none of the depreciation creates a tax preference or adjustment for AMT purposes. All loan borrowings were used exclusively for acquisition ofequipment, consequently, all interest expense is considered business interest. In 2016, guaranteed payments of $80,000 were paid to Fox. Allen and Rowland each received guaranteed payments of$40,000. Distributions were paid to owners as follows: Fox -S85,000; Allen S51,000; Rowland S34,000. There was no distribution of any non-cash property The equipment loan is nonrecourse debt to the shareholders. All initial capital contributions were contributed by owners according to their ownership share which is as follows: Fox -50%; Allen 30%; Rowland 20% None of the owners sold any portion of their ownership interests during the year. The company has no available tax credits and is not subject to AMT. The company's operations are entirely limited to the geographic areas of North Carolina, Georgia, and South Carolina. All owners are U.S. citizens. The company had no foreign operations, no foreign bank accounts, and no interest in any foreign trusts or foreign corporations. The corporation is not subject to the consolidated audit procedures. The company files its federal tax retum in Cincinnati, Ohio. Partnership (Form 1065 Spring 2017 Michael Fox, Rachel Allen, and Hannah Rowland are owners in "FAR, LLC" a limited liability company engaged in commercial office design services. Pertinent information regarding FAR, LLC. is summarized below. Social security numbers are as follows; Michael-623-98-0123; Rachel 410-63-4297; and Hannah -855-21-1750. Michael is the Tax Matters Partner of the company. The address of the company is 2835 Lake View Drive, Charlotte, NC 28130 The company was formed and began operations on January 1,2012. The business code is 541400. The federal identification number is 67-1234598 The company uses the cash method of accounting and the calendar year for reporting. The company purchased a new office computer system on December 12, 2016. They desire to expense this asset under $179 for tax purposes. The company uses straight-line depreciation for financial reporting and recorded a total of S9,002 depreciation for book purposes (which includes depreciation on the new computer system) The company uses MACRS for its machinery and equipment and recorded S14,602 in depreciation for its other fixed assets (using MACRS). Assume none of the depreciation creates a tax preference or adjustment for AMT purposes. All loan borrowings were used exclusively for acquisition ofequipment, consequently, all interest expense is considered business interest. In 2016, guaranteed payments of $80,000 were paid to Fox. Allen and Rowland each received guaranteed payments of$40,000. Distributions were paid to owners as follows: Fox -S85,000; Allen S51,000; Rowland S34,000. There was no distribution of any non-cash property The equipment loan is nonrecourse debt to the shareholders. All initial capital contributions were contributed by owners according to their ownership share which is as follows: Fox -50%; Allen 30%; Rowland 20% None of the owners sold any portion of their ownership interests during the year. The company has no available tax credits and is not subject to AMT. The company's operations are entirely limited to the geographic areas of North Carolina, Georgia, and South Carolina. All owners are U.S. citizens. The company had no foreign operations, no foreign bank accounts, and no interest in any foreign trusts or foreign corporations. The corporation is not subject to the consolidated audit procedures. The company files its federal tax retum in Cincinnati, Ohio