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 INFORMATION
Malcolm 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 partnersâ€™ 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 Statement
Fees Ccollected $ 800,000
Dividend Iincome (all qualified) 3,600
Taxable business interest 1,400
Tax-exempt interest 2,600
Long-term capital loss (4,000)
Total Rrevenues $ 803,600
Accounting Ffees $ 12,000
Contribution to United Way 2,000
Depreciation Eexpense 8,119
Employee Ssalaries 340,000
Guaranteed payments 140,000
Equipment Rentalrental 6,000
Office rentals paid 7,000
Interest Expenseexpense 4,000
Insurance Premiumspremiums 2,200
Office Eexpenses 20,481
Payroll Ttaxes 25,600
Total Eexpenses $ 602,700
MFRF, LLP Balance Sheet
Assets January 1, 2011 December 31, 2011
Cash $86,576 $84,595
Tax-exempt securities 52,000 52,000
Marketable securities 120,000 76,000
Furniture and equipment 65,000 65,000
Accumulated depreciation (36,576) (44,695)
Total aAssets $287,000 $232,900
Liabilities and Equity January 1, 2011 December 31, 2011
Nonrecourse debt on
Equipment $47,000 $32,000
Capital, Fox 120,000 100,450
Capital, Ford 120,000 100,450
Total lLiabilities and Eequity $287,000 $232,900