PLEASE HELP! PLEASE NOTICE THIS IS AS OF 2018. THANK YOU

While James Craig and his former classmate Paul Dolittle both studied accounting at school, they ended up pursuing careers in professional cake decorating. Their company, Good to Eat (GTE), specializes in custom-sculpted cakes for weddings, birthdays, and other celebrations. James and Paul formed the business at the beginning of 2018, and each contributed $50,000 in exchange for a 50 percent ownership interest. GTE also borrowed $200,000 from a local bank. Both James and Paul had to personally guarantee the loan. Both owners provide significant services for the business. The following information pertains to GTEs 2018 activities:

• GTE uses the cash method of accounting (for both book and tax purposes) and reports income on a calendar-year basis.
• GTE received $450,000 of sales revenue and reported $210,000 of cost of goods sold (it did not have any ending inventory).
• GTE paid $30,000 compensation to James, $30,000 compensation to Paul, and $40,000 of compensation to other employees (assume these amounts include applicable payroll taxes if any).
• GTE paid $15,000 of rent for a building and equipment, $20,000 for advertising, $14,000 in interest expense, $4,000 for utilities, and $2,000 for supplies.
• GTE contributed $5,000 to charity.
• GTE received a $1,000 qualified dividend from a great stock investment (it owned 2 percent of the corporation distributing the dividend), and it recognized $1,500 in short-term capital gain when it sold some of the stock.
• On December 1, 2018, GTE distributed $20,000 to James and $20,000 to Paul.
• GTE has qualified property of $300,000 (unadjusted basis).

(Leave no answer blank. Enter zero if applicable. Enter N/A if not applicable.)

b-1. Assume James and Paul formed GTE as an LLC. Complete GTEs Form 1065, page 1; Form 1065, Schedule K

Download the Tax Form and enter the required values in the appropriate fields.

b-2. Assume James and Paul formed GTE as an LLC. Complete Pauls Form 1065, Schedule K-1

Download the Tax Form and enter the required values in the appropriate fields.

b-3. Assume James and Paul formed GTE as an LLC.

1. i. Compute the tax basis of Pauls stock in GTE at the end of 2018.
2. ii. What amount of Pauls income from GTE is subject to FICA or self-employment taxes?
3. iii. What amount of income, including its character, will Paul recognize on the $20,000 distribution he receives on December 1?
4. iv. What amount of tax does GTE pay on the $1,000 qualified dividend it received?

b-1 : form of the the actual 2018 Form 1065 Schedule K

b-2 : form of actual 2018 schedule k-1 (form 1065)

and b-3 as shown.

i. End of Year Stock Basis i. Paul's income iv. Tax b-1. Assume James and Paul formed GTE as an LLC. Complete GTE's Form 1065, page 1: Form 1065, Schedule K Download the Tax Form and enter the required values in the appropriate fields. Please right click on the attached Adobe document and select open in new window. T the required values in the appropriate fields. Save your completed Tax Form to your computer and then upload it here by clicking "Browse." Next, click "Save." hen, download the Tax Form and enter 1065e U.S. Return of Partnership Income OMB No. 15450123 2018 Form For calendar year 2018, or tax year beginning 2014, ending , 20 Go to www.rsgov/Form 1065 for instructions and the latest inforrnason.. A Principal busness acvity Name of patnershp groduot or serviTypeNumber, sreet, and room or suite no. I a P.O.box ee instructions E Date business started City or town, slale or perovace, counry,and Zir foregn pota o Print F Total assats (see G Chack applicabile boxes: (Initial retum (2) Final return() Name change (4) Address change (5) Amended return b-2. Assume James and Paul formed GTE as an LLC. Complete Paul's Form 1065, Schedule K-1 Download the Tax Form and enter the required values in the appropriate fields. Please right click on the attached Adobe document and select open in new window. Then, download the Tax Form and ent the required values in the appropriate fields. Save your completed Tax Form to your computer and then upload it here by clicking "Browse." Next, click "Save." OMB No. 1545-0123 Part ll erneo Share afr Curent Year tn Schedule K-1 (Form 1065) Department of the Treasury Part III 1 Ordinary business income s15 Credits 2 Net rental real estate income foss) 3 Other net rental income (oss) 2018 Deductions, Credits, and Other Items Internal Revenue Service For calender year 2018, or tax year beginning Partner's Share of Income, Deductions, Credits, etc. 16 Foreign transactions See back of form and separate instructions PartInformation About the PartnershipQed A Partnership's employer identfication number Interost Income B Partnenship's name, address, clty, state, and ZP oode a Ordinary dividends i. End of Year Stock Basis i. Paul's income iv. Tax b-1. Assume James and Paul formed GTE as an LLC. Complete GTE's Form 1065, page 1: Form 1065, Schedule K Download the Tax Form and enter the required values in the appropriate fields. Please right click on the attached Adobe document and select open in new window. T the required values in the appropriate fields. Save your completed Tax Form to your computer and then upload it here by clicking "Browse." Next, click "Save." hen, download the Tax Form and enter 1065e U.S. Return of Partnership Income OMB No. 15450123 2018 Form For calendar year 2018, or tax year beginning 2014, ending , 20 Go to www.rsgov/Form 1065 for instructions and the latest inforrnason.. A Principal busness acvity Name of patnershp groduot or serviTypeNumber, sreet, and room or suite no. I a P.O.box ee instructions E Date business started City or town, slale or perovace, counry,and Zir foregn pota o Print F Total assats (see G Chack applicabile boxes: (Initial retum (2) Final return() Name change (4) Address change (5) Amended return b-2. Assume James and Paul formed GTE as an LLC. Complete Paul's Form 1065, Schedule K-1 Download the Tax Form and enter the required values in the appropriate fields. Please right click on the attached Adobe document and select open in new window. Then, download the Tax Form and ent the required values in the appropriate fields. Save your completed Tax Form to your computer and then upload it here by clicking "Browse." Next, click "Save." OMB No. 1545-0123 Part ll erneo Share afr Curent Year tn Schedule K-1 (Form 1065) Department of the Treasury Part III 1 Ordinary business income s15 Credits 2 Net rental real estate income foss) 3 Other net rental income (oss) 2018 Deductions, Credits, and Other Items Internal Revenue Service For calender year 2018, or tax year beginning Partner's Share of Income, Deductions, Credits, etc. 16 Foreign transactions See back of form and separate instructions PartInformation About the PartnershipQed A Partnership's employer identfication number Interost Income B Partnenship's name, address, clty, state, and ZP oode a Ordinary dividends