Please complete the 1065, schedule k-1 (2 of them), form 1125-A

Phil Williams and Liz Johnson are 60% and 40% active partners, respectively, in Williams & Johnson General Partnership. Williams & Johnson sells remote control cars. Williams & Johnson General Partnership 1234 One Way Road Formed 1/1/2010 Charleston, SC 29444 Accrual Basis 57-5555555 335,000 80,000 73,000 182,000 47.000 Phil Williams Liz Johnson 6890 Two Way Street 1112 Three Way Court Charleston, SC 29444 Charleston, SC 29444 555-55-5555 666-66-6666 Tax representative partner Income Statement Revenues: Sales Revenue $ Sales Returns and Allowances Cost of Goods Sold Gross Profit Expenses Salaries and wages Guaranteed payments: Williams Johnson Depreciation Interest expense Taxes and licenses Rent Automobile Meals Insurance (nonpartner health) Accounting and legal Repairs Charitable contributions Supplies Expense Total Expenses Other Income Interest income Dividend income (ordinary & qualified) Total Other Income Net Income 50,000 20,000 40,000 5,200 5,000 10,000 2,500 2,000 1,000 500 1,300 2,000 500 187,000 6,000 10,000 16,000 11,000 31-Dec $ Balance Sheet 1-Jan Assets: Cash $ 20,800 Accounts Receivable 9,000 Inventory 68,000 Supplies 1,500 Tax Exempt Bonds 40,000 Investments 25,200 Building and Equipment 464,000 Less: Accumulated Depreciation (95,000) Total Assets $ 533,500 25,000 8,000 75,000 1,300 40,000 25,200 500,000 (135,000) 539,500 $ $ $ 20,000 100,000 15,000 140,000 Liabilities & Owners' Capital: Accounts Payable Nonrecourse liabilities (long-term) Capital Williams Johnson Total Liabilities and Capital 248,100 165,400 533,500 230,700 153,800 539,500 $ $ Notes: 1) Inventory-related purchases during the year were $80,000. The inventory is based on the cost method. Assume the rules of $263A do not apply. 2) MACRS depreciation for 2020 is $50,000. 3) Interest income consists of $2,000 interest income of money market account, $3,000 interest on US Treasury bond, and $1,000 interst on City of Charleston bond. 4) Distributions of $40,000 were made. $24,000 to Williams and $16,000 to Johnson. 1065 Form OMB No 1545-0523 U.S. Return of Partnership Income For calendar year 2020, or tax year beginning 2020, ending Go to www.irs.gov/Form 1065 for instructions and the latest information. Name of partnership Department of the Treasury Internal Revenue Service A Principal business activity 20 2020 D Employection E Date business started 8 Predical product or serdce Type Number, street, and room or sute no. 1 a PO bor, see instructions. C Business code number Print City or town, state or province, country, and ZIP or fordion postcode or F Totes see instructions) $ G Check applicable boxen: (1) Initial return (2) Final return (3) Nome change (4) Address change (5) Amended return HCheck accounting method: (1) Cash (2) Accruat (3) Other inpocity Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax your J Check it Schedules C and M-3 are attached K Check it partnership (1) Aggregated activities for section 465 at-risk purposes (2) Grouped activities for section 469 passive activity purposes Caution: Include only trade or business income and expenses on lines 1a through 22 below. See instructions for more information. 1a Gross receipts or sales. 1a b Returns and allowances 1b Balance. Subtract line 1b from line 1a. 10 2 Cost of goods sold (attach Form 1125-A) 2 3 Gross profit. Subtract line 2 from line 1c. 3 4 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) 7 Other income (loss) (attach statement) 7 8 Total income (loss). Combine lines 3 through ? 8 Income NO OGN Ir 7 8 5 Net farm profit (loss) (attach Schedule F (Form 1040}} 5 6 Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) 6 7 Other Income (loss) (attach statement) 7 8 Total income (loss). Combine lines 3 through 7 9 Salaries and wagos (other than to partners) (ess employment credits) 9 10 Guaranteed payments to partners 10 11 Repairs and maintenance 11 12 Bad debts 12 13 Rent 13 14 Taxes and licenses 14 15 Interest (see instructions) 15 16a Depreciation (if required, attach Form 4562) 160 b Loss depreciation reported on Form 1125-A and elsewhere on return 16b 160 17 Depletion (Do not deduct oil and gas depletion.) 17 18 Retirement plans, etc.. 18 19 Employee benefit programs 19 20 Other deductions (attach statement) 20 21 Total deductions. Add the amounts shown in the far right column for lines 9 through 20 21 22 Ordinary business income (loss). Subtract line 21 from line 8 22 23 Interest du under the look back mothod-completed long-term contracts (attach Form 8697) 23 24 Interest due under the look back method-income forecast method (attach Form 8866) 24 25 BBA AAR imputed underpayment (see Instructions) 25 26 Other taxes (see instructions) 26 27 Total balance due. Add lines 23 through 26 27 28 Payment (see instructions) 28 29 Amount owed. If line 28 is smaller than line 27, enter amount owed 29 30 Overpayment. If line 28 is larger than line 27, enter overpayment 30 Under period of perjury, I declare that I have examined this return, inciding accompanying schedules and statements, and to the best of my knowledge and best is true, correct and complete. Declaration of prepare other than partner of imited to company member is based on all information of Sign which prepare any knowledge Deductions (senstructions for imitations Tax and Payment a c f Page 2 Schedule B Other Information 1 What type of entity is filing this return? Check the applicable box: Yes No Domestic general partnership b Domestic limited partnership Domestic limited liability company d Domestic limited liability partnership . Foreign partnership Other 2 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 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 3 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 "Yos," complete() through (iv) below O Name of Corporation 06) Emciyer Kontification ( Country of Ow) Percentage Number of any Incorporation 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 instruptions. If "Yes," complete through (M) below mu of 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. "Yes" complete through (V) below Name of Entity Employer Identification 10 Type of O Country of Maximum Entity Number of Perceritage Owned Organization Profit Low or Capital Yes No 5 6 4 Does the partnership satisfy all four of the following conditions? The partnership's total receipts for the tax year were less than $250,000 b The partnership's total assets at the end of the tax year were less than $1 millon c 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. d The partnership is not filing and is not required to file Schedule M-3 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 Lon Schedule K-1. Is this partnership a publicly traded partnership, as defined in section 469|(272 During the tax year, did the partnership have any debt that was canceled, was forgiven, or had the terms modified so as to reduce the principal amount of the debt? 7 Has this partnership filed, or is it required to file, Form 1918. Material Advisor Disclosure Statement to provide Information on any reportable transaction? 8 At any time during calendar year 2020, 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 Instructions for exceptions and filing requirements for FinCEN Form 114. Report of Foreign Bank and Financial Accounts (FBAR). 14 "Yes" entor the name of the foreign country 9 At any time during the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferorto, a foreign trust? If "Yos." the partnership may pive to file Form 3520. Annual Return To Report Transactions With Foreigo Trusts and Receipt of Cortain Foreign Gifts. See instructions Yes No Schedule B Other Information continued) 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 11 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) > 12 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? . 13 If the partnership is required to file Form 8858, Information Return of U.S. Persons with Respect To Foreign Disregarded Entities (FDES) and Foreign Branches (FBs), enter the number of Forms 8858 attached. See instructions 14 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 15 Enter the number of Forms 8865, Return of U.S. Persons with Respect to Certain Foreign Partnerships, attached to this return 160 Did you make any payments in 2020 that would require you to file Form(s) 10997 See Instructions b If "Yes," did you or will you file required Form(s) 10992 17 Enter the number of Forms 5471, Information Return of U.S. Persons with Respect To Certain Foreign Corporations, attached to this return 18 Enter the number of partners that are foreign governments under section 892 19 During the partnership's tax year, did the partnership make any payments that would require it to file Form 1042 and 1042-S under chapter 3 (sections 1441 through 1464) or chapter 4 (sections 1471 through 1474) 20 Was the partnership a specified domestic entity required to file Form 8938 for the tax year? See the Instructions for Form 8938 21 Is the partnership a section 721(c) partnership, as defined in Regulations section 1.721(C)-1(b)(14)? 22 During the tax year, did the partnership pay or accrue any interest or royalty for which one or more partners are not allowed a deduction under section 267A? See instructions If "Yes," enter the total amount of the disallowed deductions 23 Did the partnership have an election under section 1630 for any real property trade or business or any farming TINO, complete Designation or Partnership Representative below. Designation of Partnership Representative (see instructions) Enter below the information for the partnership representative (PR) for the tax year covered by this return Name of PR U.S. address of PR U.S phone number of PR if the PR is an entity, name of the designated individual for the PR U.S. address of designated individual U.S. phone number of designated individual 26 Is the partnership attaching Form 1996 to certify as a Qualified Opportunity Fund? If "Yes, enter the amount from Form 8996, line 16 27 Enter the number of foreign partners subject to section 864(c)(8) as a result of transferring all or a portion of an interest in the partnership or of receiving a distribution from the partnership 28 At any time during the tax year, were there any transfers between the partnership and its partners subject to the disclosure requirements of Regulations section 1.707-8? 20 Since December 22, 2017, did a foreign corporation directly or indirectly acquire substantially all of the properties constituting a trade or business of your partnership, and was the ownership percentage (by vote or value) for purposes of section 7874 greater than 50% (for example, the partners hold more than 50% of the stock of the foreign corporation)? If "Yes," list the ownership percentage by vote and by value. See instructions. Percentage: By Vote By Value Form 1065 2020 Page 4 Total amount Form 1005 22020) Schedule K Partners Distributive Share Items 1 Ordinary business income (loss) (page 1. line 22) 2 Net rental real estate income (loss) (attach Form 8825) 3a Other aross rental income on Tine here to watch 1 2 3 Partnership Representative DOW. Designation of Partnership Representative (see instructions) Enter below the information for the partnership representative (PR) for the tax year covered by this return. Name of PR U.S. address of PR US phone number of PR If the PR in an entity, name of the denignated individual for the PR U.S. address of designated individual designated individu of 26 Is the partnership attaching Form 8996 to certify as a Qualified Opportunity Fund? If "Yes," enter the amount from Form 8996, line 16 27 Enter the number of foreign partners subject to section 864(0)8) as a result of transferring all or a portion of an interest in the partnership or of receiving a distribution from the partnership 28 At any time during the tax year, were there any transfers between the partnership and its partners subject to the disclosure requirements of Regulations section 1.707-8? 29 Since December 22, 2017, did a foreign corporation directly or indirectly acquire substantially all of the properties constituting a trade or business of your partnership, and was the ownership percentage (by vote or value) for purposes of section 7874 greater than 50% (for example, the partners held more than 50% of the stock of the foreign corporation)? "Yes," list the ownership percentage by vote and by value. See Instructions. Percentage: By Vote By Value Form 1065 20001 Page 4 Total amount Form 1005 (2000) Schedule.K Partners Distributive Share Items 1 Ordinary business income foss) (page 1, line 22) 2 Net rental real estate income (loss) (attach Form 8825) 1 2 Page 4 Total amount 1 2 C 4a 3c Income (Loss) 4c 5 ba Schedule K Partners' Distributive Share Items 1 Ordinary business income (loss) (page 1, line 22) 2 Net rental real estate income (oss) (attach Form 8825) 3a Other gross rental income (loss) 3a b Expenses from other rental activities (attach statement) 3b Other net rental income (loss). Subtract line 3b from line 3a 4 Guaranteed payments: a Services b Capital 4b c Total. Add lines 4a and 4b 5 Interest income 6 Dividends and dividend equivalents: a Ordinary dividends b Qualified dividends 6b c Dividend equivalents 7 Royalties 8 Net short-term capital gain (loss) (attach Schedule D (Form 1065)) 9a Net long-term capital gain (oss) (attach Schedule D (Form 1065)) b Collectibles (28%) gain (loss). 9b c Unrecaptured section 1250 gain (attach statement) 9c 10 Net section 1231 gain (loss) (attach Form 4797) 11 Other income (oss) (see instructions) Type 12 Section 179 deduction (attach Form 4582) 13a Contributions. b Investment interest expense c Section 59(e)(2) expenditures: (1) Type (2) Amount d Other deductions (see instructions) Type 14a Net earnings (loss) from self employment b Gross farming or fishing income Gross.nonfarm income 15a Low-income housing credit (Section 420(5)) b Low-income housing credit (other) o Qualified rehabilitation expenditures frental real estate attach Form 3468, if applicable) 7 8 Sa Employ. Deductions Sell ment 10 11 12 13a 13b 13c12 13d 14a 146 140 150 15b 15c dits SC Emp ma Credits 145 14c 15a 15b 150 150 15e 151 165 160 16e 16h Foreign Transactions aming or fishing income Gross nonfarm income 15a Low-income housing credit (section 420/5) b Low-income housing credit (other) c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable) d Other rental real estate credits (see instructions) Type e Other rental credits (see instructions) Type | Other credits (see instructions) Type 169 Name of country or U.S. possession b Gross income from all sources c Gross income sourced at partner level Foreign gross income sourced at partnership level d Reserved for future use e Foreign branch category Passive category g General category h Other (attach statement) Deductions allocated and apportioned at partner level 1 Interest expense i Other Deductions allocated and apportioned at partnership level to foreign source income K Reserved for future use I Foreign branch category m Passive category n General category o Other (attach statement) p Total foreign taxes (check one): Paid Acorued q Reduction in taxes available for credit (attach statement) Other foreign tax information (attach statement) 17a Post-1986 depreciation adjustment b Adjusted gain or loss C Depletion (other than oil and gas) do gas, and geothermal properties-gross income e Oil, gas, and geothermal properties -deductions 1 Other AMT items (attach statement) 18a Tax-exempt interest income bOther tax-exempt income 16] AA 161 160 16p 169 Tax Alternative Minimum (AMT) Items 17a 17b 170 17d 17e 171 18a 1 ation Alternative Minimum Ta (AMT) Items Other Information b Adjusted gain or loss c Depletion (other than oil and gas) d Oil, gas, and geothermal properties-gross income e Oil, gas, and geothermal properties -deductions 1 Other AMT items (attach statement) 180 Tax-exempt interest income b Other tax-exempt income c Nondeductible expenses 19a Distributions of cash and marketable securities b Distributions of other property 20a Investment income b Investment expenses Other items and amounts (attach statement) 17b 17c 17d 17e 177 18a 18b 18c 19a 19b 20a 20b Form 1065 020) Form 1065 2020 Page 5 Analysis of Net Income (Loss) 1 Net income (oss). Combine Schedule K, lines 1 through 11. From the result, subtract the sum of Schedule K, lines 12 through 13d, and 16p 1 2 Analysis by Corporate ) Individual (iii) Individual (iv) Partnership IV) Exempt (vi) partner type: (activo) (passivo) Organization Nominee/Other a General partners b Limited partners Schedule L Balance Sheets per Books Beginning of tax year End of tax year Assets () (b) c) Idi (a) (b) (d) Assets 1 Cash 2a Trade notes and accounts receivable b Less allowance for bad debts 3 Inventories 4 U.S. government obligations 5 Tax-exempt securities 6 Other current assets (attach statement) 7a Loans to partners (or persons related to partners) Mortgage and real estate loans 8 Other investments (attach statement) 90 Buildings and other depreciable assets bLoss accumulated depreciation 10a Depletable assets b Less accumulated depletion 11 Land (net of any amortization) 12a Intangible assets (amortizable only) b Less accumulated amortization 13 Other assets (attach statement) 14 Total assets - Liabilities and Capital 15 Accounts payable 16 Mortgages, notes, bonds payable in less than 1 year 17 Other current liabilities (attach statement) 18 All nonrecourse loans 19a Loans from partners (or persons related to partners) b Mortgages, notes, bonds payable in 1 year or more 20 Other liabilities (attach statement) 21 Partners' capital accounts 22 Total liabilities and capital 18 All nonrecourse loans 19a Loans from partners for persons related to partners) b Mortgages, notes, bonds payable in 1 year or more. 20 Other liabilities (attach statement) 21 Partners' capital accounts 22 Total liabilities and capital Schedule M-1 Reconciliation of Income (Loss) per Books With Income (Loss) per Return Note: The partnership may be required to file Schedulo M-3. See instructions. 1 Not income (loss) per books. 6 Income recorded on books this year not included 2 Income included on Schedule K, lines 1, 2, 3C, on Schedule Kines 1 through 11 (ternize): 5, 6, 7, 8, 9, 10, and 11, not recorded on a Tax-exempt interests books this year temize 3 Guaranteed payments (other than health 7 Deductions included on Schedule K, lines Insurance) 1 through 13d, and 16p, not charged 4 Expenses recorded on books this year against book income this year (itemize): not included on Schedule K, lines 1 a Depreciation $ through 13d, and 16p (itemize): a Depreciation $ 8 Add lines 6 and 7 b Travel and entertainment 9 Income (loss) (Analysis of Net Income 5 Add lines through 4 (Loss), line 1). Subtract line 8 from line 5 Schedule M-2 Analysis of Partners' Capital Accounts 1 Balance at beginning of year 6 Distributions: a Cash 2 Capital contributed: a Cash b Property b Property 7 Other decreases (tomize): 3 Not income (loss) per books 4 Other increases (itemize): 8 Add lines 6 and 7 5 Addlines 1 through 4 Balance at end of year. Subtract line from line 5 9 Form 106520201 2020 Schedule K-1 (Form 1065) Department of the Treasury Internal Revenue Service Final K-1 Amended K-1 OMB NO. 15-45-012 Part III Partner's Share of Current Year Income, Deductions, Credits, and Other Items 1 Ordinary business income 15 Credits For Calendar year 2020, of tax year ending 2 Not rental real estate income foss beginning 2020 Partner's Share of Income, Deductions, Credits, etc. See soparate instructions Part 1 Information About the Partnership Partnership's employer identification number 3 Othernet conta como o 16 Foreign transactions 4a Guranteed payments for services A Guaartoed payments for capit B Partnership's name, address, city, state, and ZIP code 40 Total guaranteed payments 5 Interest income Ga Ordinary dividends IRS Conter where partnership retum D Check if this is a publicly traded partnership PTP) Part 11 Information About the Partner Partner's SSN CF TIN (Do not use TIN of a disregarded entity. See instructions E 66 Olified dividends F Nume, address, city, stato, and ZIP code to partner entered in E See hatructions. 6c Dividend equivalents 17 Alternative minimum tax AMT item 7 Royalties G B Nel short-term capital gains IT General partner or LLC Limited partner or other LLC member manager member Domestic partner D) Foreign partner If the partner is a disregarded anty, enter the parts 90 DD 18 Net long-term capital gainos) H1 H2 Tax-exempt income and nondeductible expenses 5 Gall a pa Net Sonorm capital gain(1066) H1 H2 9a Nit long-term capital gainos) 18 Tax exempt Income and nondeductible expenses 96 Collectibles (20%) gain) 11 12 Umited partner or older LLC member-manager member Domestic partner Foreign partner I the partner is a disregarded entity (DE), enter the partners: TIN Name What type of entity is this partner? it this partner is a retirement plan (IBA/SEP/Keogh etc.), check here I Parter's suwe of profit, loss, and capital (see instructions Beginning Ending Pront % LOSS Capital Check it decrease is due to suo or exchange of partnership interest 9c Unrecaptured section 1250 g in J 10 Net section 1231 gain o) 19 Distribution % 11 Other income (055) Gl*** 20 Other information K 12 Section 179 deduction 13 Other deductions Partner's share of liabilities Beginning Ending Nonrecourse Qualified nonrecourt financing 3 Recourse Check this box if item includes lability amounts from lower that partnerships, Partner's Capital Account Analysis L 14 Self-employment earnings (0) Beginning capital account Crotal contributed during the year Cunant your net income) Otorinolach options Withdrawals distributions Ending capital account 21 More than one activity for atrisk purposes 20 More than one activity for passive activity purposes See attached statement for additional information