David Rose and Patrick Brewer each own an equal share of the Rose Apothecary Partnership, a retail
Question:
David Rose and Patrick Brewer each own an equal share of the Rose Apothecary Partnership, a retail establishment. Business Code: 452990. The partnership is located at 5900 N. Main Street. Milwaukee, WI 53202. The business started on February 1, 2020. Total Assets = $250,000. They are general partners. The partnership EIN is 56-1234567. It is an accrual-based business. David’s basis was $30,000 and Patrick’s basis was $32,000 to start the business. In 2020, the partnership had the following income and expense items
Sales $800,000
Cost of goods sold $360,000
Guaranteed payment to David Rose $ 60,000
Rent Expense $ 44,400
Depreciation $ 27,000
Interest Expense $ 4,200
Repairs and Maintence Expense $ 2,500
Health insurance premiums for Rose $ 5,500
Health insurance premiums for Brewer $ 5,500
At the end of the year, each partner received a $15,000 cash distribution. Prepare pages 1 and 4 of Form 1065 (January 1, 2020 – December 31, 2020) for the Rose Apothecary Partnership. Prepare a Schedule K-1, Schedule E and Schedule 1 for David Rose, SSN: 123-99-2020. Filing Status: Single. His address is 1745 Stone Creek Lane River Hills, WI 53217. David’s deductible portion of self-employment tax is $11,363
Expert Answer:
Form 1065 Page 1 A Partnership Information Partnership name Rose Apothecary Partnership Business code 452990 Address 5900 N Main Street Milwaukee WI 53202 Partnership EIN 561234567 Tax method Accrual ... View the full answer
