y Houdeni and Billy the Kid are partners in the Magic lllusio are partners in the Magic Illusion Partnership performing illusion show for entertainment as th code number is: E015-1234 and EIN is 987-654-3210 During 2018, t eir primary business activity. The partnership was formed in 2017, Business's he partnership began operations and had the following income and expenses: Gross Income from Operations $335,000 Deductions Salaries to employees Rent Payroll Taxes Depreciation Charitable contributions (to 30 percent organizations) 2,500 $225,000 15,000 6,100 10,000 Cash Withdrawals ($15,000 each partner) 30,000 The Partnership's balance sheet is as follows: Magic Illusion Balance Sheet as of December 31, 2018 Assets Cash Accounts Receivable Land Building $27,000 10,000 250,000 $128,000 (10,000) Less: Accumulated Depreciation Total Assets 118,000 405,000 Liabilities and Partners' Capital: Accounts Payable Mortgage Payable $135,000 165,000 105,000 Partners' Capital (includes $40, 200 originally contributed, $64,800 by each partner) $405,000 Total Liabilities and Partners' Capital INSTRUCTIONS Complete Form 1065, Page 1 for Harry