Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required Information Form 1 0 6 5 U . S . Return of Partnership Income OMB No . 1 5 4 5 - 0 1
Required Information Form
US Return of Partnership Income
OMB No
Caution: Include only trade or business income and expenses on lines a through below. See instructions for more information.
While James Craig and his former classmate Paul Dolittle both studied accounting at school, they ended up pursuing
careers in professional cake decorating. Thelr company, Good to Eat GTE speciallzes in customsculpted cakes for
weddings, birthdays, and other celebrations. James and Paul formed the business at the beginning of and each
contributed $ in exchange for a percent ownership Interest. GTE also borrowed $ 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 GTE's activitles:
GTE uses the cash method of accounting for both book and tax purposes and reports income on a calendaryear
basis.
GTE recelved $ of sales revenue and reported $ of cost of goods sold It did not have any ending
Inventory
GTE pald $ compensation to James, $ compensation to Paul, and $ of compensation to other
employees assume these amounts include applicable payroll taxes, if any
GTE pald $ of rent for a building and equipment, $ for advertising, $ in interest expense, $
for utilities, and $ for supplies.
GTE contributed $ to charity.
GTE recelved a $ qualified dividend from a great stock investment It owned percent of the corporation
distributing the dividend and it recognized $ in shortterm capital gain when it sold some of the stock.
On December GTE distributed $ to James and $ to Paul.
GTE has qualified property of $unadjusted basis
Note: Leave no answers blank. Enter zero If applicable. Enter NA If not applicable.
a Assume James and Paul formed GTE as an S corporation.
Complete GTE's Form S page ; Form S Schedule K
Note: Use tax rules regardless of year on tax form.
Employer Identification number:
Complete GTE's Form S page ; Form S Schedule KRequired Informatlon
While James Craig and his former classmate Paul Dolittle both studied accounting at school, they ended up pursuing
careers in professional cake decorating. Thelr company, Good to Eat GTE speciallizes in customsculpted cakes for
weddings, birthdays, and other celebrations. James and Paul formed the business at the beginning of and each
contributed $ in exchange for a percent ownership interest. GTE also borrowed $ 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 GTE's activities:
GTE uses the cash method of accounting for both book and tax purposes and reports income on a calendaryear
basis.
GTE recelved $ of sales revenue and reported $ of cost of goods sold It did not have any ending
Inventory
GTE pald $ compensation to James, $ compensation to Paul, and $ of compensation to other
employees assume these amounts include applicable payroll taxes, if any
GTE pald $ of rent for a bullding and equipment, $ for advertising, $ in interest expense, $
for utilitles, and $ for supplies.
GTE contributed $ to charity.
GTE recelved a $ qualified dividend from a great stock investment it owned percent of the corporation
distributing the dividend and it recognized $ in shortterm capital gain when it sold some of the stock.
On December GTE distributed $ to James and $ to Paul.
GTE has qualfied property of $unadjusted basis
Note: Leave no answers blank. Enter zero If applicable. Enter NA If not applicable.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started