Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $138,000, and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $74,200 and was appraised at $208,000. The land was also encumbered with a $74,200 nonrecourse mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of the first year, Blue Bell made a $9,800 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information: Sales revenue Cost of goods sold Operating expenses Long-term capital gains $1231 gains Charitable contributions Municipal bond interest. Salary paid as a guaranteed payment to Deanne (not) included in expenses) $ 512,000 432,400 92,400 2,820 600 300 300 3,000 1. Using the information generated in answering parts (a) and (b), prepare Blue Bell's page 1 and Schedule K to be included with its Form 1065 for its first year of operations, along with Schedule K-1 for Deanne. Note: Use 2023 tax rules regardless of year on tax form. Percentages should be rounded to two decimal places. Losses should b entered as negative numbers and input all other values as positive numbers. Instructions can be found within the form as well.
Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $138,000, and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $74,200 and was appraised at $208,000. The land was also encumbered with a $74,200 nonrecourse mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of the first year, Blue Bell made a $9,800 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information: Sales revenue Cost of goods sold Operating expenses Long-term capital gains $1231 gains Charitable contributions Municipal bond interest. Salary paid as a guaranteed payment to Deanne (not) included in expenses) $ 512,000 432,400 92,400 2,820 600 300 300 3,000 1. Using the information generated in answering parts (a) and (b), prepare Blue Bell's page 1 and Schedule K to be included with its Form 1065 for its first year of operations, along with Schedule K-1 for Deanne. Note: Use 2023 tax rules regardless of year on tax form. Percentages should be rounded to two decimal places. Losses should b entered as negative numbers and input all other values as positive numbers. Instructions can be found within the form as well.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and
Deanne each contributed $138,000, and Keon transferred an acre of undeveloped land to the partnership. The land had a
tax basis of $74,200 and was appraised at $208,000. The land was also encumbered with a $74,200 nonrecourse
mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of
the first year, Blue Bell made a $9,800 principal payment on the mortgage. For the first year of operations, the partnership
records disclosed the following information:
Sales revenue
Cost of goods sold
Operating expenses
Long-term capital gains
$1231 gains
Charitable contributions
Municipal bond interest
Salary paid as a guaranteed payment to Deanne (not
included in expenses)
$ 512,000
432,400
92,400
2,820
600
300
300
3,000
1. Using the information generated in answering parts (a) and (b), prepare Blue Bell's page 1 and Schedule K to be included with its
Form 1065 for its first year of operations, along with Schedule K-1 for Deanne.
Note: Use 2023 tax rules regardless of year on tax form. Percentages should be rounded to two decimal places. Losses should be
entered as negative numbers and input all other values as positive numbers. Instructions can be found within the form as well.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7ae8884-4294-4483-9dd3-3d65e6fd2736%2F1a8f2e6c-39a2-4f26-b207-c85b1c905df4%2Ffc8tc7g_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and
Deanne each contributed $138,000, and Keon transferred an acre of undeveloped land to the partnership. The land had a
tax basis of $74,200 and was appraised at $208,000. The land was also encumbered with a $74,200 nonrecourse
mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of
the first year, Blue Bell made a $9,800 principal payment on the mortgage. For the first year of operations, the partnership
records disclosed the following information:
Sales revenue
Cost of goods sold
Operating expenses
Long-term capital gains
$1231 gains
Charitable contributions
Municipal bond interest
Salary paid as a guaranteed payment to Deanne (not
included in expenses)
$ 512,000
432,400
92,400
2,820
600
300
300
3,000
1. Using the information generated in answering parts (a) and (b), prepare Blue Bell's page 1 and Schedule K to be included with its
Form 1065 for its first year of operations, along with Schedule K-1 for Deanne.
Note: Use 2023 tax rules regardless of year on tax form. Percentages should be rounded to two decimal places. Losses should be
entered as negative numbers and input all other values as positive numbers. Instructions can be found within the form as well.
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