Ab sold stock for 11000 on 2112 that was purchased on 2104

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Reference no: EM13573267

Prepare a Form 1065 and appropriate schedules for AB Custom Saddles for tax year 2012 based upon the following facts:AB Custom Saddles is a Domestic LLC formed on 1/1/2004. It has assets of $125,000. Employer,ID #41-678910. It is located at 1601 Mill Road, Windriver, MN 56300. Business code *1234567.

AB has two equal owners, Alan Anderson, SSN 555-00-2211, address: 1112 Broadway Ave., Minneapolis, MN 56011. Alan works full-time for AB and is paid a guaranteed payment of $30,000 per year. His capital account and basis going into 2012 were both $10,000. And Bradley Bailey, SSN 470-31-0202, 1000 3rd St., Windom, MN 56011. He also has a basis and capital account of $10,000 going into 2012.

AB distributed $5,000 in cash, $2500 to each Alan and Bradley in 2012.

Business information:
Income from sales $175,000
Cost of goods sold 38,000
Rent expense 4,000
Telephone expense 2,000
Advertising 3,000
Salaries to non-owners 27,000
Taxes 2,400
Depreciation from previous years (Line 17 4562) 1,000
Repairs 1,000

AB sold stock for $11,000 on 2/1/12 that was purchased on 2/1/04 for $7,000.AB sold a machine that was fully depreciated on 3/1/12 for $4,000.AB bought and placed in service a used machinefor $8,000 on June 1, 2012 and wants to expense the entire amount in 2012 if possible.Complete part L of the K-1 for each partner.

Reference no: EM13573267

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