Question: Can you solve this by inputting the data on Form 1065? Return Issues arlotte formed the dam and Barbara $100,000, and worth $130.000 Practice Problem

Can you solve this by inputting the data on Form 1065? Can you solve this by inputting the data on Form 1065? Return

Return Issues arlotte formed the dam and Barbara $100,000, and worth $130.000 Practice Problem Tax Return dam. Barbara, and Charlotte for qual ABC Partnership: Adama each contributed cash of $100.00 Charlotte contributed land worth with a basis of $120.000 and sub mortgage of $30,000. In the fi t oa the cash basis for tax purposes) the following for tax purposes: Vet boses) they had the Sales $400.000 1 Purchases of inventory 10.000 Ending Inventory Depreciation Section 179 expense Salaries 40.000 30.000 Guaranteed payment to Adam Purchases of equipment Rent expense 25.000 40,000 15.000 150,000 20.000 6.000 Interest Income Mortgage interest expense Ending accounts receivable 1.500 35,000 Depreciation for book purposes was $20,000, and they had a bad debt accrued expense of $4,000 for book purposes, but no actual charge-offs during the year. Interest income comes from earnings on the cash balance. a. What is ABC's ordinary business income (for tax purposes - p. 1, line 22, Form 1065) for the year? b. What are its separately stated items (those that go on Sch. K)? c. Compute total tax net income, including separately stated items, and reconcile it with book net income (the M-1 reconciliation would be the reverse). d. What are its beginning and ending balance sheets for book purposes (as would go on Sch. L, Form 1065)

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