Ryan Ross $(111-11-1112),$ Oscar Omega $(222-22-2223),$ Clark Carey $(333-33-3334),$ and Kim Kardigan $(444-44-4445)$ are equal active members in ROCK the Ages LLC$.$ ROCK serves as agent and manager for prominent musicians in the Los Angeles area. The LLC$\text{'}$s Federal ID number is $55-5555556.$ It uses the cash basis and the calendar year and began operations on January $1,2009.$ Its current address is $6102$ Wilshire Boulevard, Suite $2100,$ Los Angeles, CA $90036.$ ROCK was the force behind such music icons as Adrianna Venti, Drake Malone, Elena Gomez, Tyler Quick, Queen Bey, and Bruno Mercury and has had a very profitable year. The following information was taken from the LLC$\text{'}$s income statement for the current year.

Revenues

Fees and commissions $$4,800,000$

Taxable interest income from bank deposits $1,600$

Tax$-$exempt interest $3,200$

Net gain on stock sales $4,000$

Total revenues $$4,808,800$

Expenses

Advertising and public relations $$380,000$

Charitable contributions $28,000$

$179$ expense $20,000$

Employee salaries and wages $1,000,000$

Guaranteed payment $($services$),$ Ryan Ross, office manager $800,000$

Guaranteed payment $($services$),$ other members $600,000$

Business meals, subject to $50\%$ disallowance $200,000$

Business restaurant meals and travel $(100\%$ deductible$)320,000$

Legal and accounting fees $132,000$

Office rentals paid $80,000$

Interest expense on operating line of credit $10,000$

Insurance premiums $52,000$

Office expense $200,000$

Payroll taxes $92,000$

Utilities $54,800$

Total expenses $$3,968,800$

Recently, ROCK has taken advantage of bonus depreciation and $179$ deductions and fully remodeled the premises and upgraded its leasehold improvements. This year, ROCK wrapped up its remodel with the purchase of $$20,000$ of office furniture for which it will claim a $179$ deduction. $($For simplicity, assume that ROCK uses the same cost recovery methods for both tax and financial purposes.$)$ There is no depreciation adjustment for alternative minimum tax purposes.

ROCK invests much of its excess cash in non$-$dividend$-$paying growth stocks and tax$-$exempt securities$.$ During the year, the LLC sold two securities$.$ On June $15,2021,$ ROCK purchased $1,000$ shares of Tech, Inc., stock for $$100,000$; it sold those shares on December $15,2021,$ for $$80,000.$ On March $15,2020,$ ROCK purchased $2,000$ shares of BioLabs, Inc., stock for $$136,000$; it sold those shares for $$160,000$ on December $15,2021.$ These transactions were reported to the IRS on Forms $1099$B; ROCK's basis in these shares was reported.

Net income per books is $$840,000.$ On January $1,2021,$ the members' tax basis capital accounts equaled $$200,000$ each. No additional capital contributions were made in $2021.$ In addition to their guaranteed payments, each member withdrew $$250,000$ cash during the year. All contributions and distributions have been in cash, so the LLC has no net unrecognized $704($c$)$ gain or loss. The LLC$\text{'}$s balance sheet as of December $31,2021,$ is as follows.

Beginning Ending

Cash $$444,000$ $$??$

Tax$-$exempt securities $120,000120,000$

Marketable securities $436,000300,000$

Leasehold improvements, furniture, and equipment $960,000980,000$

Accumulated depreciation $(960,000)(980,000)$

Total assets $$1,000,000$ $$??$

Operating line of credit $$200,000$ $$160,000$

Capital, Ross $200,000??$

Capital, Omega $200,000??$

Capital, Carey $200,000??$

Capital, Kardigan $200,000??$

Total liabilities and capital $$1,000,000$ $$??$

The firm's activities do not constitute "qualified production activities" for purposes of the $199$ deduction. $($Note that the $179$ deduction is a business$-$related expense.$)$ The LLC$$s UBIA $($unadjusted basis immediately after acquisition$)$ equals the total original cost of all leasehold improvements, or $$980,000.$

All debt is shared equally by the members. Each member has personally guaranteed the debt of the LLC$.$ All members are active in LLC operations. The business code for the entity is $711410.$

Complete the $2021$ Form $1065$ for ROCK the Ages LLC with appropriate forms and schedules. Prepare Schedule K$1$ for Ryan Ross.

If an amount box does not require an entry or the answer is zero, enter $"0".$

Enter all amounts as positive numbers, unless otherwise instructed.

If required, round amounts to the nearest dollar.

Make realistic assumptions about any missing data.