The Dapper-Knowles Partnership was formed in 2010 as a general partnership to customize Ford pickup trucks. Dapper-Knowles is located at 123 Furscon Drive in Atlanta, GA 30339. Steve Dapper manages the business and has a 40% capital and profits interest. His address is 709 Brumby Way, Atlanta, GA 30334. Jackie Knowles owns the remaining 60% interest but is not active in the business. Her address is 807 Ninth Avenue, Marietta, GA 30104. 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 interests 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 Knowles, respectively, on December 30, 2020. It made no other property distributions. Financial statements for the 2020 accounting year are presented below. Steve Dapper is the Designated Partnership Representative.

For the Danson-Knowles Partnership, prepare page 1 of Form 1065 (2020 tax year) in good form.

The following information is available from the general ledger of the Danson-Knowles Partnership for 2020. Sales Returns and allowances $2,357,000 (20,000) $2,337,000 Beginning inventory (FIFO method) Purchases Labor (W-2 wages) Other costs Goods available for sale Ending inventory Gross profit $ 200,050 624,000 600,000 54,000 $1,478,050 (146,000) (1,332,050) $ 1,004,950 Salaries for employees other than partners (W-2 wages) Guaranteed payment to Dapper for services Utilities expense Depreciat (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) Total expenses Operating profit Other income and losses: Gain on sale of AB stock Loss on sale of CD stockd Sec. 1231 gain on sale of lande Interest on U.S. Treasury bills for entire year ($80,000 face amount) Dividends from 15%-owned domestic corporation Net income $51,000 85,000 46,428 49,7 12,085 4,420 85,000 2,100 45,000 7,400 11,020 68,300 3,600 16,400 5,180 1,400 494,115 $ 510,835 $ 18,000 (26,075) 5,050 2,000 11,000 9,975 $ 520,810 Additional Information a. The partnership reports a $10,000 positive AMT adjustment for property placed in service after 1986. b. The partnership made all contributions in cash to qualifying charities. C. The partnership purchased the AB stock as an investment two years ago on December 1, 2018, for $40,000 and sold it on June 14, 2020 for $58,000. d. The partnership purchased the CD stock as an investment on February 15, 2020 for $100,000 and sold it on August 1, 2020 for $73,925. e. The partnership used the land as a parking lot for the business. The partnership purchased the land four years ago on March 17, 2016, for $30,000 and sold it on August 15, 2020 for $35,050. The following information is available from the general ledger of the Danson-Knowles Partnership for 2020. Sales Returns and allowances $2,357,000 (20,000) $2,337,000 Beginning inventory (FIFO method) Purchases Labor (W-2 wages) Other costs Goods available for sale Ending inventory Gross profit $ 200,050 624,000 600,000 54,000 $1,478,050 (146,000) (1,332,050) $ 1,004,950 Salaries for employees other than partners (W-2 wages) Guaranteed payment to Dapper for services Utilities expense Depreciat (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) Total expenses Operating profit Other income and losses: Gain on sale of AB stock Loss on sale of CD stockd Sec. 1231 gain on sale of lande Interest on U.S. Treasury bills for entire year ($80,000 face amount) Dividends from 15%-owned domestic corporation Net income $51,000 85,000 46,428 49,7 12,085 4,420 85,000 2,100 45,000 7,400 11,020 68,300 3,600 16,400 5,180 1,400 494,115 $ 510,835 $ 18,000 (26,075) 5,050 2,000 11,000 9,975 $ 520,810 Additional Information a. The partnership reports a $10,000 positive AMT adjustment for property placed in service after 1986. b. The partnership made all contributions in cash to qualifying charities. C. The partnership purchased the AB stock as an investment two years ago on December 1, 2018, for $40,000 and sold it on June 14, 2020 for $58,000. d. The partnership purchased the CD stock as an investment on February 15, 2020 for $100,000 and sold it on August 1, 2020 for $73,925. e. The partnership used the land as a parking lot for the business. The partnership purchased the land four years ago on March 17, 2016, for $30,000 and sold it on August 15, 2020 for $35,050