The partnership has engaged you to prepare the 2020 Form 1065. Include the Schedules K-1 and the Form 1125-A, Cost of Goods Sold. Assume the partnership has no debts. In answering questions on the tax return, you may make assumptions if the above facts aren’t providing you with the information. Use Tax ACT to prepare the Form 1065 for ABC LLP.  

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Form 1065 Practice Tax Return Facts in 2018: • ABC LLP, a limited liability partnership, . EIN-74-1234567 Date Business Started 1/1/2000 Total Assets $3,050,000 • Gross Receipts $1,000,000 Cost of Goods Sold $400,000 (assume no beginning and ending inventory and purchases are $400,000) • ABC LLP uses FIFO method for determining the cost of goods sold and the cash method for all other income and expenses. • • Business Activity: retail sales; Product: Family Clothing: Business code: 448140. The partnership is a cash basis business • . Guaranteed payment for services in the amount of $200,000 was paid to Bee Jones. Bee is also the Tax Matters partner. Salaries and wages paid to employees was $50,000 Office Rent paid for home office was $10,000 Supplies expense totaled $40,000 Partner information is as follows: Partner Bee Jones John Smith Julie Smart Capital Profit Loss Residency 40% 40% 40% TX 40% 40% 40% TX 20% 20% 20% TX SSN 222-22-2222 124 Oak Dr 333-33-3333 125 Oak Di 444-44-4444 126 Oak Dr Bee Jones John Smith Julie Smart Address • All partners materially participate in the day-to-day partnership operations. All partners use their tax basis as their capital account balances. The partner's beginning Capital Balances at 1/1/2018 are as follows: Partner Capital Balance $1,100,000 $1,100,000 $ 550,000 Form 1065 Practice Tax Return Facts in 2018: • ABC LLP, a limited liability partnership, . EIN-74-1234567 Date Business Started 1/1/2000 Total Assets $3,050,000 • Gross Receipts $1,000,000 Cost of Goods Sold $400,000 (assume no beginning and ending inventory and purchases are $400,000) • ABC LLP uses FIFO method for determining the cost of goods sold and the cash method for all other income and expenses. • • Business Activity: retail sales; Product: Family Clothing: Business code: 448140. The partnership is a cash basis business • . Guaranteed payment for services in the amount of $200,000 was paid to Bee Jones. Bee is also the Tax Matters partner. Salaries and wages paid to employees was $50,000 Office Rent paid for home office was $10,000 Supplies expense totaled $40,000 Partner information is as follows: Partner Bee Jones John Smith Julie Smart Capital Profit Loss Residency 40% 40% 40% TX 40% 40% 40% TX 20% 20% 20% TX SSN 222-22-2222 124 Oak Dr 333-33-3333 125 Oak Di 444-44-4444 126 Oak Dr Bee Jones John Smith Julie Smart Address • All partners materially participate in the day-to-day partnership operations. All partners use their tax basis as their capital account balances. The partner's beginning Capital Balances at 1/1/2018 are as follows: Partner Capital Balance $1,100,000 $1,100,000 $ 550,000

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Form 1065 US Return of Partnership Income ABC LLP Tax Year 2018 Part I Income Gross Receipts or Sale... View the full answer