Ryan Ross ( 1 1 1 1 1 1 1 1 2 ) , Oscar Omega ( 2 2 2 2 2 2 2 2 3 ) , Clark Carey ( 3 3 3 3 3 3 3 3 4 ) , and Kim Kardigan ( 4 4 4 4 4 4 4 4 5 ) 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 s Federal ID number is 5 5 5 5 5 5 5 5 6 It uses the cash basis and the calendar year and began operations on January 1 , 2 0 1 0 Its current address is 6 1 0 2 Wilshire Boulevard, Suite 2 1 0 0 , Los Angeles, CA 9 0 0 3 6 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 s income statement for the current year Category one Revenues Fees and commissions $ 4 , 8 0 0 , 0 0 0 Taxable interest income from bank deposits $ 1 , 6 0 0 Tax exempt interest $ 3 , 2 0 0 Net gain on stock sales $ 4 , 0 0 0 Total revenues $ 4 , 8 0 8 , 8 0 0 Category two Expenses Advertising and public relations $ 3 8 0 , 0 0 0 Charitable contributions $ 2 8 , 0 0 0 Section 1 7 9 expense $ 2 0 , 0 0 0 Employee W 2 wages $ 1 , 0 0 0 , 0 0 0 Guaranteed payment for services to Ryan Ross, office manager $ 8 0 0 , 0 0 0 Guaranteed payment of services to other members $ 6 0 0 , 0 0 0 Business meals subject to 5 0 percent disallowance $ 2 0 0 , 0 0 0 Travel $ 3 2 0 , 0 0 0 Legal and accounting fees $ 1 3 2 , 0 0 0 Office rentals paid $ 8 0 , 0 0 0 Interest expense on operating line of credit $ 1 0 , 0 0 0 Insurance premiums $ 5 2 , 0 0 0 Office expense $ 2 0 0 , 0 0 0 Payroll taxes $ 9 2 , 0 0 0 Utilities $ 5 4 , 8 0 0 Total expenses $ 3 , 9 6 8 , 8 0 0 Enlarge Image Recently, ROCK has taken advantage of bonus depreciation and 1 7 9 deductions and fully remodeled the premises and upgraded its leasehold improvements This year, ROCK wrapped up its remodel with the purchase of $ 2 0 , 0 0 0 of office furniture for which it will claim a 1 7 9 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 1 5 , ROCK purchased 1 , 0 0 0 shares of Tech, Inc stock for $ 1 0 0 , 0 0 0 it sold those shares on December 1 5 for $ 8 0 , 0 0 0 On March 1 5 of last year, ROCK purchased 2 , 0 0 0 shares of BioLabs, Inc stock for $ 1 3 6 , 0 0 0 it sold those shares for $ 1 6 0 , 0 0 0 on December 1 5 of the current year These transactions were reported to the IRS on Forms 1 0 9 9 B ROCK s basis in these shares was reported Net income per books is $ 8 4 0 , 0 0 0 On January 1 , the members tax basis capital accounts equaled $ 2 0 0 , 0 0 0 each No additional capital contributions were made this year In addition to their guaranteed payments, each member withdrew $ 2 5 0 , 0 0 0 cash during the year All contributions and distributions have been in cash, so the LLC has no net unrecognized 7 0 4 ( c ) gain or loss The LLC s balance sheet as of December 3 1 of this year is as follows Row One Cash Beginning $ 4 4 4 , 0 0 0 Ending Unknown amount Row two Tax exempt securities Beginning $ 1 2 0 , 0 0 0 Ending $ 1 2 0 , 0 0 0 Row three Marketable securities Beginning $ 4 3 6 , 0 0 0 $ Ending 3 0 0 , 0 0 0 Row four Leasehold improvements, furniture, and equipment Beginning $ 9 6 0 , 0 0 0 Ending $ 9 8 0 , 0 0 0 Row five Accumulated depreciation Beginning Less $ 9 6 0 , 0 0 0 Ending Less $ 9 8 0 , 0 0 0 Row six Total assets Beginning $ 1 , 0 0 0 , 0 0 0 Ending Unknown amount Row one Operating line of credit Beginning $ 2 0 0 , 0 0 0 Ending $ 1 6 0 , 0 0 0 Row two Capital, Ross Beginning $ 2 0 0 , 0 0 0 Ending Amount unknown Row three Capital, Omega Beginning $ 2 0 0 , 0 0 0 Ending Unknown amount Row four Capital, Carey Beginning $ 2 0 0 , 0 0 0 Ending Unknown amount Row five Capital, Kardigan Beginning $ 2 0 0 , 0 0 0 Ending Unknown amount Row six Total liabilities and capital Beginning $ 1 , 0 0 0 , 0 0 0 Ending Unknown amount Enlarge Image 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 For our purposes, assume the LLC is not considered an SSTB , and ROCK s operations constitute one active trade or business for purposes of the passive activity and at risk limitations ( Note that the 1 7 9 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 $ 9 8 0 , 0 0 0 The appropriate business code for the entity is 7 1 1 4 1 0 For the Form 1 0 6 5 , page 5 , Analysis of Net Income, put all partners allocations in cell 2 ( b ) ( ii ) , per IRS instructions for an LLC Need help with the excel calculations to complete this return

Question

Ryan Ross ( 1 1 1   1 1   1 1 1 2 ) , Oscar Omega ( 2 2 2   2 2   2 2 2 3 ) , Clark Carey ( 3 3 3   3 3   3 3 3 4 ) , and Kim Kardigan ( 4 4 4   4 4   4 4 4 5 ) 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 s Federal ID number is 5 5   5 5 5 5 5 5 6   It uses the cash basis and the calendar year and began operations on January 1 , 2 0 1 0   Its current address is 6 1 0 2 Wilshire Boulevard, Suite 2 1 0 0 , Los Angeles, CA 9 0 0 3 6   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 s income statement for the current year  Category one  Revenues  Fees and commissions  $ 4 , 8 0 0 , 0 0 0   Taxable interest income from bank deposits  $ 1 , 6 0 0   Tax exempt interest  $ 3 , 2 0 0   Net gain on stock sales  $ 4 , 0 0 0   Total revenues  $ 4 , 8 0 8 , 8 0 0   Category two  Expenses  Advertising and public relations  $ 3 8 0 , 0 0 0   Charitable contributions  $ 2 8 , 0 0 0   Section 1 7 9 expense  $ 2 0 , 0 0 0   Employee W 2 wages  $ 1 , 0 0 0 , 0 0 0   Guaranteed payment for services to Ryan Ross, office manager  $ 8 0 0 , 0 0 0 Guaranteed payment of services to other members  $ 6 0 0 , 0 0 0   Business meals subject to 5 0 percent disallowance  $ 2 0 0 , 0 0 0   Travel  $ 3 2 0 , 0 0 0   Legal and accounting fees  $ 1 3 2 , 0 0 0   Office rentals paid  $ 8 0 , 0 0 0   Interest expense on operating line of credit  $ 1 0 , 0 0 0   Insurance premiums  $ 5 2 , 0 0 0   Office expense  $ 2 0 0 , 0 0 0   Payroll taxes  $ 9 2 , 0 0 0   Utilities  $ 5 4 , 8 0 0   Total expenses  $ 3 , 9 6 8 , 8 0 0   Enlarge Image Recently, ROCK has taken advantage of bonus depreciation and 1 7 9 deductions and fully remodeled the premises and upgraded its leasehold improvements  This year, ROCK wrapped up its remodel with the purchase of $ 2 0 , 0 0 0 of office furniture for which it will claim a 1 7 9 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 1 5 , ROCK purchased 1 , 0 0 0 shares of Tech, Inc  stock for $ 1 0 0 , 0 0 0   it sold those shares on December 1 5 for $ 8 0 , 0 0 0   On March 1 5 of last year, ROCK purchased 2 , 0 0 0 shares of BioLabs, Inc  stock for $ 1 3 6 , 0 0 0   it sold those shares for $ 1 6 0 , 0 0 0 on December 1 5 of the current year  These transactions were reported to the IRS on Forms 1 0 9 9 B  ROCK s basis in these shares was reported  Net income per books is $ 8 4 0 , 0 0 0   On January 1 , the members tax basis capital accounts equaled $ 2 0 0 , 0 0 0 each  No additional capital contributions were made this year  In addition to their guaranteed payments, each member withdrew $ 2 5 0 , 0 0 0 cash during the year  All contributions and distributions have been in cash, so the LLC has no net unrecognized 7 0 4 ( c ) gain or loss  The LLC s balance sheet as of December 3 1 of this year is as follows  Row One  Cash  Beginning  $ 4 4 4 , 0 0 0   Ending  Unknown amount  Row two  Tax   exempt securities   Beginning  $ 1 2 0 , 0 0 0   Ending  $ 1 2 0 , 0 0 0   Row three  Marketable securities   Beginning  $ 4 3 6 , 0 0 0   $ Ending  3 0 0 , 0 0 0   Row four  Leasehold improvements, furniture, and equipment  Beginning  $ 9 6 0 , 0 0 0   Ending  $ 9 8 0 , 0 0 0   Row five  Accumulated depreciation  Beginning  Less $ 9 6 0 , 0 0 0   Ending  Less $ 9 8 0 , 0 0 0   Row six  Total assets  Beginning  $ 1 , 0 0 0 , 0 0 0   Ending  Unknown amount  Row one  Operating line of credit  Beginning  $ 2 0 0 , 0 0 0   Ending  $ 1 6 0 , 0 0 0   Row two  Capital, Ross  Beginning  $ 2 0 0 , 0 0 0   Ending  Amount unknown  Row three  Capital, Omega  Beginning  $ 2 0 0 , 0 0 0   Ending  Unknown amount  Row four  Capital, Carey  Beginning  $ 2 0 0 , 0 0 0   Ending  Unknown amount  Row five  Capital, Kardigan  Beginning  $ 2 0 0 , 0 0 0   Ending  Unknown amount  Row six  Total liabilities and capital  Beginning  $ 1 , 0 0 0 , 0 0 0   Ending  Unknown amount  Enlarge Image 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  For our purposes, assume the LLC is not considered an SSTB , and ROCK s operations constitute one active trade or business for purposes of the passive activity and at   risk limitations   ( Note that the 1 7 9 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 $ 9 8 0 , 0 0 0   The appropriate business code for the entity is 7 1 1 4 1 0   For the Form 1 0 6 5 , page 5 , Analysis of Net Income, put all partners allocations in cell 2 ( b ) ( ii ) , per IRS instructions for an LLC   Need help with the excel calculations to complete this return

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Ryan Ross ( 1 1 1 - 1 1 - 1 1 1 2 ) , Oscar Omega ( 2 2 2 - 2 2

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