Partnership Tax Return Project ScenarioAngela Fitzgerald and Enrique Ortiz formed the TriCom Company on $1/30/2018$ and chose a tax year ending on $1/30.$ TriCom was formed to operate a restaurant $($In the TriCom Building at $93874$ West Loop Ave, Salem, OR $97301)$ and rent out some space in the restaurant building. TriCom elected to be taxed as a partnership, and the income statement for the year ending $1/30/2023$ is as follows: Sales$$400,000$COGS$-150,000$Tax$-$exempt interest$6,000$Interest income$4,000$Dividend income from domestic corporations$5,000$Nonqualified dividend income from foreign corporations$3,000$Gain on sale of equipment$10,000$Depreciation$-30,000$Repairs and maintenance$-7,000$Rent expense$-12,000$Salaries to non$-$partners$-60,000$Salaries to partners$-30,000$Income from real estate rentals$100,000$Expenses from real estate rentals $($includes $$10,000$ of book depreciation$)-80,000$Gain on sale of stock $($held $<1$ yr$.)20,000$Health Department fines$-2,000$Investment interest expense$-1,000--------------------------------------------------------------------------------------------------$Subtotal$$176,000$ TriCom chooses the accrual method of accounting. The equipment sold was an imported oven that had been fully depreciated. It originally cost $$4,000$ on $7/3/2015$ and was sold for $$10,000$ on $8/9/2022.$ The tax depreciation amount for the year was $$20,000,$ not including $$14,000$ of Section $179$ expense that TriCom chose to take on some equipment they purchased, and not including the $$10,000$ per year depreciation of the rental real estate, which is included in the $$80,000$ of costs above. $($Note: according to the Form $4562$ instructions, the depreciation from the rental activity would not need to be disclosed on Form $4562)$ All of the $$30,000$ of guaranteed payments goes to Angela for services she renders to the partnership. Assume that $40\%$ of the investment interest expense is nondeductible because it relates to the tax$-$exempt interest. The stock sold was $1000$ shares of Alter Corporation, purchased on $3/10/2022$ for $$25,000$ and sold on $6/10/2022$ for $$45,000.$ Angela owns $60\%$ of the partnership, and is an active partner. Angela is the Partnership Representative. Enrique owns $40\%,$ but is a passive, limited partner. During the year Angela was distributed $$60,000$ and Enrique was distributed $$40,000.$ The balance sheet of the partnership is as follows: BeginningEndingCash$$10,000$$$77,000$Accounts Receivable$10,00020,000$Inventory$15,00010,000$Tax$-$exempt securities$100,000100,000$Equipment$90,000140,000$Accumulated depreciation$-50,000-66,000$Real estate$700,000700,000$Accumulated depreciation$-40,000-60,000$Total assets$835,000921,000$Accounts payable$10,00020,000$Mortgages$500,000500,000$Capital Angela$195,000240,600$Capital Enrique$130,000160,400----------------------------------------------------------------------------------------------------$Total liabilities and capital$$835,000$$$921,000$ All of the $$54,000$ of equipment purchased this year was restaurant equipment, and was $7-$year property eligible for the Section $179$ deduction. Aside from the equipment expensed under Section $179,$ all of the new equipment was depreciated under MACRS. There is no AMT adjustment for depreciation except for the adjustment due to the current year purchases $($the net adjustment for prior year purchases was zero$).$ All of the mortgage debt is qualified nonrecourse debt, and none of it is payable in the next year. Both the rental and the restaurant are qualified businesses for purposes of the Section $199$A qualified business income deduction. All of the depreciable assets are deemed to be associated with a qualified business under Section $199$A$,$ and the salaries to employees are all W$-2$ wages under Section $199$A$.$Fill out a Form $1065$ and all other appropriate forms for TriCom and the related Schedules K$-1$ for Angela and Enrique. The necessary addresses and TINs are as follows:Angela Fitzgerald$1842$ Rutgers StPortland, OR $97201$SS# $925-67-8374$Enrique Ortiz$927$ First St$.$Eugene, OR $97401$SS# $837-62-5769$Charter Company$93874$ West Loop AveSalem, OR $97301$EIN $04-8348953$