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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 HC. ROCK serves as

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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 HC. ROCK serves as agent and manager for prominent musicians in the Los Angeles area. The UCs Federal ID number is 555555556. 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 LC's income statement for the current year. 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 fumiture for which it will claim a \& 179 deduction. CFor simplicity, assume that ROCK uses the same cost reconery methods for both tax and financial purposes) There is no depreciation adjustment for altemative minimum tax purposes ROCK invests much of its excess cash in non-dividend-paying growth stocks and tax-exempt securities. During the year, the LL sold two securities. On June 15, ROCK purchased 1,000 shares of Tech, Inc stock for $100,000, it sold those shares on December 15 for $80,000. On March 15 of last year, ROCK purchased 2,000 shares of Biotabs, Inc. stock for $136,000; it sold those shares for $160,000 on December 15 of the current year. These transactions were reported to the IRS on Forms 1099-B; ROCK's basis in these shares uas reported. Net income per books is $840,000. On January 1 , the members' tax basis capital accounts equaled $200,000 each. No additional capital contributions were made this year. 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 UC has no net unrecognized \$704(c) gain or loss. The LCs balance sheet as of December 31 of this year is as follows. All debe is shared equally by the members. Each member has personally guaranteed the debt of the LLC. All members are active in LIC operations. For our purposes, assume the L.C 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 8179 deduction is a business-related expense.) The LLCs UBLA (unadjused basis immediately after acquisition) equals the total original cost of all leaschold improvements, or $990,000. The appropriate business code for the entity is 711410 . For the Form 1065 , page 5. Analysis of Net Income, put all partners' allocations in cell 2(b) (ii), per IRS instructions for an L.C. a. Complete the 2021 Form 1065 for ROCK the Ages UC with appropriate forms and schedules, Suggested software: ProConnect Tax. Use tax-hasis information for Schedules 1. and M-2. Provide any spectal information the LL members might need, including net income from self-employment and information for the $199A calculation. Attach additional statements if needed, and leave information blank if not available. b. Continue by preparing Schedules K1 for ROCK's members. Pay attention to any special allocation required for Ryan Ross. Ross's address is 15520 W. Farlvon Strect, Pacific Palisades, CA 90272 . (Leave other addresses blank.) - Form 1065 - Schedule K-1 (for Ryan Ross only) - Word/Excel showing details of "attach statement" items (for example page 1, line 20 othe deductions) - QBI Supplemental information (template provided in Content) 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 HC. ROCK serves as agent and manager for prominent musicians in the Los Angeles area. The UCs Federal ID number is 555555556. 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 LC's income statement for the current year. 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 fumiture for which it will claim a \& 179 deduction. CFor simplicity, assume that ROCK uses the same cost reconery methods for both tax and financial purposes) There is no depreciation adjustment for altemative minimum tax purposes ROCK invests much of its excess cash in non-dividend-paying growth stocks and tax-exempt securities. During the year, the LL sold two securities. On June 15, ROCK purchased 1,000 shares of Tech, Inc stock for $100,000, it sold those shares on December 15 for $80,000. On March 15 of last year, ROCK purchased 2,000 shares of Biotabs, Inc. stock for $136,000; it sold those shares for $160,000 on December 15 of the current year. These transactions were reported to the IRS on Forms 1099-B; ROCK's basis in these shares uas reported. Net income per books is $840,000. On January 1 , the members' tax basis capital accounts equaled $200,000 each. No additional capital contributions were made this year. 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 UC has no net unrecognized \$704(c) gain or loss. The LCs balance sheet as of December 31 of this year is as follows. All debe is shared equally by the members. Each member has personally guaranteed the debt of the LLC. All members are active in LIC operations. For our purposes, assume the L.C 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 8179 deduction is a business-related expense.) The LLCs UBLA (unadjused basis immediately after acquisition) equals the total original cost of all leaschold improvements, or $990,000. The appropriate business code for the entity is 711410 . For the Form 1065 , page 5. Analysis of Net Income, put all partners' allocations in cell 2(b) (ii), per IRS instructions for an L.C. a. Complete the 2021 Form 1065 for ROCK the Ages UC with appropriate forms and schedules, Suggested software: ProConnect Tax. Use tax-hasis information for Schedules 1. and M-2. Provide any spectal information the LL members might need, including net income from self-employment and information for the $199A calculation. Attach additional statements if needed, and leave information blank if not available. b. Continue by preparing Schedules K1 for ROCK's members. Pay attention to any special allocation required for Ryan Ross. Ross's address is 15520 W. Farlvon Strect, Pacific Palisades, CA 90272 . (Leave other addresses blank.) - Form 1065 - Schedule K-1 (for Ryan Ross only) - Word/Excel showing details of "attach statement" items (for example page 1, line 20 othe deductions) - QBI Supplemental information (template provided in Content)

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