* Please complete the Book Vs Tax sheet & Identify which items are Ordinary & Separated (include the amounts) *

The partnership was formed by Arie (Individual), Bell(Individual) and Carpenter, Inc. (Corporation).
Blue Bell General Partnership
		1/1/2019
Assets			Liabilities
Current			Current
Cash	$135,000		Accounts Payable	$5,000
Accounts Receivable	$200,000
Allowance for Doubtful Accounts	($50,000)
Long-term			Long-term
Land	$15,000		Loan	$10,000
			Equity
			Capital-Arie	$95,000
			Capital-Bell	$95,000
			Capital-Carpenter,Inc	$95,000
Total Assets	$300,000		Total Claims	$300,000
Blue Bell General Partnership
		12/31/2019
Assets			Liabilities
Current			Current
Cash	$69,300		Accounts Payable	$3,000
Accounts Receivable	$150,000
Allowance for Doubtful Accounts	($35,000)
Investments	$20,000
Long-term			Long-term
Land	$15,000		Loan	$30,000
Equipment	$10,000		Equity
AccDep-Equipment	($2,000)		Capital-Arie	$366,233
			Capital-Bell	$366,233
			Capital-Carpenter,Inc	$366,233
			Each partner received a distribution of $20,000 in cash
Total Assets	$227,300		Total Claims	$1,131,700

Accounts	Net Income per Books		Adjustments		Taxable Income
Sales Revenue	$1,000,000.00
Cost of Goods Sold	($600,000.00)
Gross Margin	$400,000.00
Dividends from 10% owned Corporation	$2,000.00
Interest from city issued bonds	$500.00
Interest from Investments	$2,000.00
Capital Gains from sale of real estate	$10,000.00
Royalty Income	$7,000.00
Salaries	($350,000.00)
Parking fines	($200.00)
Organizational Expense (Total $40,000) Amortize over 10 years company started this year (1/1/2019)	($4,000.00)
Bad Debt Expense (for AR allowance adjustment; 10% of accrual amount actually written off)	($15,000.00)
Owner Expensed his business related trip to Las Vegas	($3,500.00)
Guaranteed Payments	($7,000.00)
Capital Loss from sale of equipment	($14,000.00)
Warrant Expense (Actual payments = $2,000)	($1,500.00)
Depreciation Expense ($10,000 piece of equipment acquired on 6/1/2019. Totally written off for tax purposes)	($2,000.00)
Charitable Contributions	($50,000.00)
Meals and Entertainment	($5,000.00)
Net Income	($30,700.00)		$0.00		$0.00