Ryan Wilder (111-11-1112), Oscar Churchill (222-22-2223), Clark Schick (333-33-3334), and Kim Howard (444-44-4445) are equal, active, and unrelated members in Wilder Accounting LLC (Wilder). Wilder is an accounting services for clients that help clients with business needs in the Irvine area. The LLCs Federal ID number is 55-5555556. It uses the cash basis and the calendar year and began operations on January 1, 2007. Its current address is 2501 El Prado,

Suite 2100, Irvine, CA 90210. The financial information enclosed from the LLCs income statement for the current year. Recently, Wilder has taken advantage of bonus depreciation and fully remodeled the premises and upgraded its leasehold improvements. This year, Wilder wrapped up its remodel with the purchase of $90,000 of office furniture for which it will claim a 168(k) (i.e., bonus depreciation) deduction. (For simplicity, assume that the Company uses the same cost recovery methods for both tax and financial purposes.) There is no depreciation adjustment for alternative minimum tax purposes. Wilder invests much of its excess cash in dividend-paying stocks and tax-exempt securities. During the year, the LLC several securities transactions. On June 15, purchased 1,000 shares of Fountain, Inc. stock for $100,000; it sold those shares on December 15 for $65,000. On March 15 of last year, Wilder purchased 2,000 shares of Fenway Machinery, Inc. stock for $189,000; it sold those shares for $199,500 on December 15 of the current year. These transactions were reported to the IRS on Forms 1099B; Wilders basis in these shares was reported. Each member received an equal guaranteed payment for services rendered. Also, Ryan Wilder loaned the partnership $3,000,000 in 2015. It is an interest only note due in 2026. The LLC issued Ryan a 1099 INT for the interest on the loan. Net income per books is $1,151,900. On January 1, the members capital accounts equaled $350,000 each. Additional capital contribution was made by Wilder noted above, and the other partners also contributed cash of $250,000 as a down payment to start construction of the new building in 2023. In addition to their guaranteed payments, each member withdrew $400,000

cash during the year. All contributions and distributions have been in cash before 2022. During 2022 Winder contributed Land with a basis of $100,000 and Fair Market Value of $250,000. This land will be used to build a new office building for the Company in 2023. The LLCs balance sheet as of December 31 of this year is also enclosed. Except for the Ryan Wilder loan, all debt is shared equally by the members. Each member has personally guaranteed the line of credit debt of the LLC. All members are active in LLC operations. For our purposes, assume that Wilders operations constitute one active trade or business for purposes of the passive activity and at-risk limitations. The appropriate business code for the entity is 541200. For the Form 1065, page 5, Analysis of Net Income, put all partners allocations in cell 2(b)(ii), per IRS instructions for an LLC.

REQUIRED

1) Prepare a federal Form 1065, pages 1, 4, and 5, for Wilder Accounting LLC using tax basis information for Schedules L and M2. Use the Intuit Pro connect software provided to you in Canvas to prepare Form 1065 Forms 4562, 8949, and Schedule D and any other forms you think are necessary. DO NOT PREPARE THE STATE TAX RETURNS