TAX FORM/RETURN PREPARATION PROBLEMS C:9-57 The Dapper-Dons Partnership was formed ten years ago as a general partnership to cus- tom tailor men's clothing. Dapper-Dons is located at 123 Flamingo Drive in City, ST, 54321. Bob Dapper manages the business and has a 40% capital and profits interest. His address is 709 Brumby Way, City, ST, 54321. Jeremy Dons owns the remaining 60% interest but is not active in the business. His address is 807 Ninth Avenue, City, ST, 54321. The partnership values its inventory using the cost method and did not change the method used during the current year. The partnership uses the accrual method of accounting. The partnership has no foreign partners, no foreign transactions, no inter- ests in foreign trusts, and no foreign financial accounts. This partnership is neither a tax shelter nor a publicly traded partnership. No changes in ownership of partnership interests occurred during the current year. The partnership made cash distributions of $155,050 and $232,576 to Dapper and Dons, respectively, on December 30 of the cur- rent year. It made no other property distributions. Financial statements for the current year are presented in Tables C:9-1 and C:9-2. Bob Dapper is the Designated Partnership Representative. Prepare a current year (2018 for this problem) partnership tax return for Dapper-Dons Partnership Dapper-Dons Partnership Income Statement for the 12 Months Ending December 31 of the Current Year (Problem C:9-57) Sales Returns and allowances $2,357,000 (20,000) $2,337,000 $ 200,050 624,000 600,000 54,000 $1,478,050 (146,000) (1,332,050) $ 1,004,950 Beginning inventory (FIFO method) Purchases Labor Other costs Goods available for sale Ending inventory Gross profit Salaries for employees other than partners (W-2 wages) Guaranteed payment for Dapper Utilities expense Depreciation (MACRS depreciation is $74,311)a Automobile expense Office supplies expense Advertising expense Bad debt expense Interest expense (all business-related) Rent expense Travel expense (meals cost $4,050 of this amount) Repairs and maintenance expense Accounting and legal expense Charitable contributions Payroll taxes Other taxes (all trade-or business-related) $51,000 85,000 46,428 49,782 12,085 4,420 85,000 2,100 45,000 7,400 11,020 68,300 3,600 16,400 5,180 1,400 Dapper-Dons Partnership Balance sheet for January Tano December 31 or the Current Year (Problem C:9-57) Balance January 1 Balance December 31 Assets: Cash Accounts receivable Inventories Marketable securities Building and equipment Minus: Accumulated depreciation Land Total assets $10,000 72,600 200,050 220,000 337,434 (123,318) 185,000 $901,766 $ 40,000 150,100 146,000 260,000 465,000 (173,100) 240,000 $1,128,000 Liabilities and equities: Accounts payable Accrued salaries payable Payroll taxes payable Sales taxes payable Mortgage and notes payable (current maturities) Long-term debt Capital: Dapper Dons Total liabilities and equities $ 35,000 14,000 3,416 5,200 44,000 210,000 $ 46,000 18,000 7,106 6,560 52,000 275,000 236,060 354,090 $901,766 289,334 434,000 $1,128,000 Short-term investments, $80,000 of which are Treasury bills acquired in the current year. Zoom Ontions TAX FORM/RETURN PREPARATION PROBLEMS C:9-57 The Dapper-Dons Partnership was formed ten years ago as a general partnership to cus- tom tailor men's clothing. Dapper-Dons is located at 123 Flamingo Drive in City, ST, 54321. Bob Dapper manages the business and has a 40% capital and profits interest. His address is 709 Brumby Way, City, ST, 54321. Jeremy Dons owns the remaining 60% interest but is not active in the business. His address is 807 Ninth Avenue, City, ST, 54321. The partnership values its inventory using the cost method and did not change the method used during the current year. The partnership uses the accrual method of accounting. The partnership has no foreign partners, no foreign transactions, no inter- ests in foreign trusts, and no foreign financial accounts. This partnership is neither a tax shelter nor a publicly traded partnership. No changes in ownership of partnership interests occurred during the current year. The partnership made cash distributions of $155,050 and $232,576 to Dapper and Dons, respectively, on December 30 of the cur- rent year. It made no other property distributions. Financial statements for the current year are presented in Tables C:9-1 and C:9-2. Bob Dapper is the Designated Partnership Representative. Prepare a current year (2018 for this problem) partnership tax return for Dapper-Dons Partnership Dapper-Dons Partnership Income Statement for the 12 Months Ending December 31 of the Current Year (Problem C:9-57) Sales Returns and allowances $2,357,000 (20,000) $2,337,000 $ 200,050 624,000 600,000 54,000 $1,478,050 (146,000) (1,332,050) $ 1,004,950 Beginning inventory (FIFO method) Purchases Labor Other costs Goods available for sale Ending inventory Gross profit Salaries for employees other than partners (W-2 wages) Guaranteed payment for Dapper Utilities expense Depreciation (MACRS depreciation is $74,311)a Automobile expense Office supplies expense Advertising expense Bad debt expense Interest expense (all business-related) Rent expense Travel expense (meals cost $4,050 of this amount) Repairs and maintenance expense Accounting and legal expense Charitable contributions Payroll taxes Other taxes (all trade-or business-related) $51,000 85,000 46,428 49,782 12,085 4,420 85,000 2,100 45,000 7,400 11,020 68,300 3,600 16,400 5,180 1,400 Dapper-Dons Partnership Balance sheet for January Tano December 31 or the Current Year (Problem C:9-57) Balance January 1 Balance December 31 Assets: Cash Accounts receivable Inventories Marketable securities Building and equipment Minus: Accumulated depreciation Land Total assets $10,000 72,600 200,050 220,000 337,434 (123,318) 185,000 $901,766 $ 40,000 150,100 146,000 260,000 465,000 (173,100) 240,000 $1,128,000 Liabilities and equities: Accounts payable Accrued salaries payable Payroll taxes payable Sales taxes payable Mortgage and notes payable (current maturities) Long-term debt Capital: Dapper Dons Total liabilities and equities $ 35,000 14,000 3,416 5,200 44,000 210,000 $ 46,000 18,000 7,106 6,560 52,000 275,000 236,060 354,090 $901,766 289,334 434,000 $1,128,000 Short-term investments, $80,000 of which are Treasury bills acquired in the current year. Zoom Ontions