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Malcolm Fox and Rhonda Ford -Partnership Tax Return

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Question;Partnership Tax ReturnINSTRUCTIONS:Please use the information below to complete the Form 1065 and the Schedule K-1 for Malcolm Fox only. Blank forms can be found on the IRS site or Doc Sharing. If you have a tax- software package, please feel free to use the package, but be aware that I your instructor will not be able to answer specific questions about the software package.GENERAL COMPANY INFORMATIONMalcolm Fox and Rhonda Ford are equal partners in MFRF, LLP, a small business consulting firm. The partners are not related and are all U.S. citizens. Malcolm Fox lives at 415 Knight Court in Freeport, ME 04469 with a social Social security Security number of 123-45-6789. Rhonda Ford lives at 123 Main Street in Freeport, ME 04469 with a social Social security Security number of 456-12-4561.The limited liability partnership uses the cash basis and the calendar year and began operation on January 1, 2009. The Federal ID is 11-1111111, and the current address is 2835 Harbor View Drive, Freeport, ME 04469 for MFRF, LLP.The partnership placed its $65,000 of furniture and fixtures in service on January 1, 2009. This year, it claimed $8,119 of depreciation expense on for tax (line 16a and 16c) and financial purposes. No assets were placed in service in the current year.On October. 15, the partnership sold securities, creating a $4,000 long term capital loss. Please enter this directly onto schedule K,, there is not enough information to create the detail.Net income per books is $200,900. On January 1, 2010, the partners? capital accounts equal $120,000 each. No additional capital contributions were made in 2010, and each partner made withdrawals of $120,000 during the year.MFRF, LLP Income StatementRevenues:Fees Ccollected $ 800,000Dividend Iincome (all qualified) 3,600Taxable business interest 1,400Tax-exempt interest 2,600Long-term capital loss (4,000)Total Rrevenues $ 803,600Expenses:Accounting Ffees $ 12,000Advertising 5,000Contribution to United Way 2,000Depreciation Eexpense 8,119Employee Ssalaries 340,000Guaranteed payments 140,000Entertainment 2,600Travel 12,000Equipment Rentalrental 6,000Office rentals paid 7,000Interest Expenseexpense 4,000Insurance Premiumspremiums 2,200Office Eexpenses 20,481Payroll Ttaxes 25,600Utilities 15,700Total Eexpenses $ 602,700MFRF, LLP Balance SheetAssets January 1, 2011 December 31, 2011Cash $86,576 $84,595Tax-exempt securities 52,000 52,000Marketable securities 120,000 76,000Furniture and equipment 65,000 65,000Accumulated depreciation (36,576) (44,695)Total aAssets $287,000 $232,900Liabilities and Equity January 1, 2011 December 31, 2011Nonrecourse debt onEquipment $47,000 $32,000Capital, Fox 120,000 100,450Capital, Ford 120,000 100,450Total lLiabilities and Eequity $287,000 $232,900

 

Paper#42949 | Written in 18-Jul-2015

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