uki, Steve, and Tom formed the SS&T General Partnership (31-6682938) on January 1, 2019.(Address:673 Main Street, Columbus, Ohio43215).The partnership agreement provides that the partners will share equally in profits and losses. SS&T is a wholesaler for HVAC units and uses cash basis accounting.Each partner contributed $110,000 in exchange for their partnership interest.The partnership obtained a bank loan for $36,000 to purchase equipment for $36,000 (no loan guarantee) and elected to take a 179 deduction for the total amount.SS&T paid interest only on the loan amounting to $2,880.The total assets at the end of the year amounted to $489,020.For the first year of operations, SS&T records disclosed the following information:

Sales revenue$470,000Cost of goods sold$240,000Salary expense$20,000Rent expense$25,000Repairs$5,000Office expense$5,000Advertising$15,000Total dividends ($2,300 qualified)$2,4001231 gains$900Charitable contributions$300Municipal bond interest$300Bank interest income$1,700Guaranteed payment to Suki for services$3,000

Action Items

1. Prepare pages 1, 4 ,and the K-1s of Form 1065.These can be downloaded fromwww.irs.gov(Links to an external site.)
2. .When preparing the forms, ignore Qualified Business Income (QBI).
3. The following is the information for the partners:

• Suki Smith, 316-26-9982, 765 North Broad Street, Columbus, Ohio43215
• Steve Avens, 256-69-1976, 892 Elm Street, Westerville, Ohio43225
• Tom Dickinson, 626-59-2197, 65 Main Street, Cleveland, Ohio42169