“Chapter 10- Partnership

Ryan Ross (111-11-1111), Oscar Oleander (222-22-2222), Clark
Carey (333-33-3333), and Kim Kardigan (444-44-4444) are equal members in
ROCK the Ages, LLC. ROCK serves as agents and managers for prominent
musicians in the Los Angeles area. The LLC s Federal ID number is
55-5555555. It uses the cash basis and the calendar year and began
operations on January 1, 2001. Its current address is 6102 Wilshire
Boulevard, Suite 2100, Los Angeles, CA 90036. ROCK was the force behind
such music icons as Rhiannon and Burgundy 5 and has had a very profitable
year. The following information was taken from the LLC s income
statement for the current year:

Revenues:
Fees and
commissions $4,800,000

Taxable interest
income from bank deposits 1,600

Tax-exempt
interest 3,200 Net gain on stock sales 4,000

Total revenues $4,808,800

Expenses:
Advertising and
public relations
$ 380,000
Charitable
contributions
28,000
Section 179
expense 20,000

Employee
salaries and wages 1,000,000
Guaranteed payment, Ryan Ross, office manager 800,000
Guaranteed
payment, other members 600,000

Entertainment,
subject to 50%disallowance 200,000

Travel 320,000

Legal and
accounting fees 132,000
Office rentals paid 80,000

Interest expense
on operating line of credit 10,000
Insurance premiums 52,000

Tax
Returns: You will prepare 3 tax returns during the semester
each one will be worth 100 points. Partial credit will be given on the returns.
Please use the appropriate drop box. I do not use the software that comes with
the textbook, so dont send me anything prepared with it. I would visit.irs.gov””>www.irs.gov to find
the appropriate forms to use for the returns. You must use tax forms for the
tax return problems, failure to do so,
will result in massive point deduction.

Chapter 10- PartnershipRevenues: Fees and
commissions $4,800,000
Taxable interest
income from bank deposits 1,600
Tax-exempt
interest 3,200 Net gain on stock sales 4,000
Total revenues $4,808,800 Expenses: Advertising and
public relations
$ 380,000 Charitable
contributions
28,000 Section 179
expense 20,000
Employee
salaries and wages 1,000,000 Guaranteed payment, Ryan Ross, office manager 800,000 Guaranteed
payment, other members 600,000
Entertainment,
subject to 50%disallowance 200,000
Travel 320,000
Legal and
accounting fees 132,000 Office rentals paid 80,000
Interest expense
on operating line of credit 10,000 Insurance premiums 52,000Tax
Returns: You will prepare 3 tax returns during the semester
each one will be worth 100 points. Partial credit will be given on the returns.
Please use the appropriate drop box. I do not use the software that comes with
the textbook, so dont send me anything prepared with it. I would visit.irs.gov””>www.irs.gov to find
the appropriate forms to use for the returns. You must use tax forms for the
tax return problems, failure to do so,
will result in massive point deduction.”