Calculate partnerships income: Prepare a 2020 Form 1065 page 1 using the following information: Sales revenue $2,750,000 Cost of sales 1,300,000 W-2 wages paid to employees 400,000 Cost recovery deductions 87,365 Utilities, supplies, and other ordinary business expenses 201,016 Payroll taxes Guaranteed payments to LLC members 70,000 40,000 Charitable contributions 10,000
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
![Calculate partnerships income: Prepare a 2020 Form 1065 page 1 using the following information:
Sales revenue
$2,750,000
Cost of sales
1,300,000
W-2 wages paid to employees
400,000
Cost recovery deductions
87,365
Utilities, supplies, and other ordinary business expenses
Payroll taxes
201,016
70,000
Guaranteed payments to LLC members
40,000
Charitable contributions
10,000
|long-term capital gain
Net income from rental real estate (net of all expenses, including $36,153
depreciation on rental property)
50,000
500,000
Qualified dividends received
Exempt income (bond interest)
4,000
2,100
Distribution of cash to partner 1
30,000
Distribution of cash to partner 2
60.000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6d702b96-16c9-42c6-953e-90c469a3b56f%2F5dfbbb27-607c-4936-a85c-1f997026eaa3%2Fhzy4vk_processed.png&w=3840&q=75)
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