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Dr. Bruce Partnership 2010

Dr. Bruce Partnership 2010 - Cash $120,000 $ 220,673...

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Dr. George Bruce Owns a Medical Building A Partnership Tax Return Exercise Accountancy 321, Spring 2011 George Bruce is a small business owner who owns 60 percent of an LLC that operates a cash basis, calendar year, rental operation that reports for federal tax purposes as a partnership. The primary building contains Dr. Bruce’s practice, his laboratory corporation, and other businesses. Rental income for the year 2010 was $125,000. The partnership also earned interest of $23. Expenses were as follows: Repairs and maintenance $ 16,400 Management fee 4,560 Utilities and insurance, etc. 2,890 Depreciation on building (Form 4562 is optional)—Book depreciation = Same 20,000 Distributions for the year (tax-free) 500 No compensation was paid to dr. Bruce and his co-owners during 2010. The balance sheet of the LLC per books (for Schedule K) follows:
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Unformatted text preview: Cash $120,000 $ 220,673 Building 780,000 780,000 Accumulated depreciation-140,000-160,000 Capital $760,000 $840,673 Required (15 points)—Due April 20 (Beginning of Class) Complete the 2010 federal Form 1065 for the LLC and Schedule K-1 for Dr. Bruce (SS# ab1-23-9876). You must provide (make it up) all necessary information that is not given for the company, including its name and address. You may work alone or in a group of up to three. Groups should submit one return with each members name listed at the top of the return. You should be able to complete this in 45 minutes. Essay (In class)--Parameters: • • 50% of evaluation is based on first impression of content. • 50% of evaluation is based on writing, including persuasion....
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