Ryan Ross $(111-11-1112),$ Oscar Omega $(222-22-2223),$ Clark Carey $(333-33-3334),$ and Kim Kardigan $(444-44-4445)$ are equal active members in ROCK the Ages LLC$.$ ROCK serves as agent and manager for prominent musicians in the Los Angeles area. The LLC$\text{'}$s Federal ID number is $55-5555556.$ It uses the cash basis and the calendar year and began operations on January $1,2010.$ Its current address is $6102$ Wilshire Boulevard, Suite $2100,$ Los Angeles, CA $90036.$ ROCK was the force behind such music icons as Adrianna Venti, Drake Malone, Elena Gomez, Tyler Quick, Queen Bey, and Bruno Mercury and has had a very profitable year. The following information was taken from the LLC$\text{'}$s income statement for the current year:

RevenuesFees and commissions$$4,800,000$Taxable interest income from bank deposits$1,600$Tax$-$exempt interest$3,200$Net gain on stock sales$4,000$Total revenues$$4,808,800$

Expenses

Advertising and public relations$$380,000$Charitable contributions $($cash$)28,000179$ expense$20,000$Employee W$2$ wages$1,000,000$Guaranteed payment $($services$),$ Ryan Ross, office manager$800,000$Guaranteed payment $($services$),$ other members$600,000$Business meals, subject to $50\%$ disallowance$200,000$Business restaurant meals and travel $(100\%$ deductible$)320,000$Legal and accounting fees$132,000$Office rentals paid$80,000$Interest expense on operating line of credit$10,000$Insurance premiums$52,000$Office expense$200,000$Payroll taxes$92,000$Utilities$54,800$Total expenses$$3,968,800$

Recently, ROCK has taken advantage of bonus depreciation and $179$ deductions and fully remodeled the premises and upgraded its leasehold improvements. This year, ROCK wrapped up its remodel with the purchase of $$20,000$ of office furniture for which it will claim a $179$ deduction. $($For simplicity, assume that ROCK uses the same cost recovery methods for both tax and financial purposes.$)$ There is no depreciation adjustment for alternative minimum tax purposes.

ROCK invests much of its excess cash in non$-$dividend$-$paying growth stocks and tax$-$exempt securities$.$ During the year, the LLC sold two securities$.$ On June $15,2023,$ ROCK purchased $1,000$ shares of Tech, Inc., stock for $$100,000$; it sold those shares on December $15,2023,$ for $$80,000.$ On March $15,2022,$ ROCK purchased $2,000$ shares of BioLabs, Inc., stock for $$136,000$; it sold those shares for $$160,000$ on December $15,2023.$ These transactions were reported to the IRS on Forms $1099$B; ROCK's basis in these shares was reported.

Net income per books is $$840,000.$ On January $1,2023,$ the members' tax basis capital accounts equaled $$200,000$ each. No additional capital contributions were made in $2023.$ In addition to their guaranteed payments, each member withdrew $$250,000$ cash during the year. All contributions and distributions have been in cash, so the LLC has no net unrecognized $704($c$)$ gain or loss. The LLC$\text{'}$s balance sheet as of December $31,2023,$ is as follows:

BeginningEndingCash$$444,000$$$??$Tax$-$exempt securities$120,000120,000$Marketable securities$436,000300,000$Leasehold improvements, furniture, and equipment$960,000980,000$Accumulated depreciation$(960,000)(980,000)$Total assets$$1,000,000$$$??$Operating line of credit$$200,000$$$160,000$Capital, Ross$200,000??$Capital, Omega$200,000??$Capital, Carey$200,000??$Capital, Kardigan$200,000??$Total liabilities and capital$$1,000,000$$$??$

The firm's activities do not constitute "qualified production activities" for purposes of the $199$ deduction. $($Note that the $179$ deduction is a business$-$related expense.$)$ The LLC$\text{'}$s UBIA $($unadjusted basis immediately after acquisition$)$ equals the total original cost of all leasehold improvements, or $$980,000.$

All debt is shared equally by the members. Each member has personally guaranteed the debt of the LLC$.$ All members are active in LLC operations. The business code for the entity is $711410.$

Complete the $2023$ Form $1065$ for ROCK the Ages LLC with appropriate forms and schedules such as Form $8949,$ Schedule D$,$ Form $4562,$ Federal Statements, Statement A$-$QBI Pass$-$through entity reporting, QBI statement information. Prepare Schedule K$1$ for Ryan Ross.