Homework answers / question archive / Final Exam Case Ray Stanz (203-44-6633), Peter Venkman (444-55-8211) and Egon Spengler (774-66-2522) are equal active partners in Ghostbusters, LLC

Final Exam Case Ray Stanz (203-44-6633), Peter Venkman (444-55-8211) and Egon Spengler (774-66-2522) are equal active partners in Ghostbusters, LLC

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Final Exam Case Ray Stanz (203-44-6633), Peter Venkman (444-55-8211) and Egon Spengler (774-66-2522) are equal active partners in Ghostbusters, LLC. The Ghostbusters serve as paranormal investigators and exterminators in the greater New York area. You may have seen their exploits on the news. The LLC’s Federal ID number is 458796325. The business uses cash basis accounting and follows the calendar year, just as its owners do. Ghostbusters began operations on June 6, 1984. Their address is 14 N Moore St., New York, NY 10013. The business activity code is 812990. The following information was taken from the Ghostbusters’ income statement for the current year. Revenues: Ghost Entrapment Proton Charging Ghost Storage Total Sales Municipal Bond Interest Bank Interest $790,000 $80,000 $80,000 $950,000 $2,500 $2,000 They received the following 1099-B with stock sales: Box 1a Box 1b Box 1c Box 1d Box 1e 18 Shares Tesla Stock 110 Shares Sony Stock 12/23/18 8/15/14 11/17/20 12/09/20 $9,015 $11,246 $3,879 $1,121 8949 Category D D The Ghostbusters also received a 1099-DIV from Merrill Lynch. EIN #45-2342341, PO Box 32334, Stanford, CT 03245. Total Ordinary Dividends: $969.55; Qualified Dividends $713.45. Expenses: Advertising Charitable Contributions Guaranteed Payment for Service for Partners Contract Labor Business Meals Travel Legal & Professional Fees Storage Rent Interest Expense Insurance Premiums Office Expense Wages Expense Payroll Taxes Real Estate Taxes Utilities Lenny for Mayor Campaign Contribution $41,000 $12,000 $300,000 $43,000 $10,760 $23,610 $40,000 $60,000 $25,325 $35,000 $13,420 $160,000 $14,310 $35,000 $17,950 $1,000 They purchased 2 new assets that need to be depreciated this year: Item Ghost Traps Proton Packs Date Purchased 3/11/20 5/12/20 Amount $21,500 $75,000 MACRS Category Equipment Equipment They want to spread out the costs for many years and do not want to use S179 on the assets. Balance Sheet Items: Cash Accounts Receivable Tax-Exempt Securities Marketable Securities Fixed Assets Accumulated Depreciation Total Assets Beginning $413,308 $107,310 $50,000 $85,000 $387,000 ($358,918) $683,700 Ending $375,596 $67,000 $50,000 $80,000 $483,500 ($392,981) $663,115 Long-Term Debt Accounts Payable Ray Stanz, Capital Peter Venkman, Capital Egon Spengler, Capital Total Liabilities & Capital $150,000 $8,700 $175,000 $175,000 $175,000 $683,700 $169,942 $10,000 ? ? ? $663,115 Prepare Form 1065 for the partnership for 2020 using TaxAct software. Complete a schedule K-1 for each of your partners. The Ghostbusters were required to file 1099’s for the contract labor and these were filed on time. Each partner withdrew $150,000 during the year from the business. The partnership has no ownership in a foreign business. The business does not need to file Form 8990. They are not a qualified opportunity fund. The business would like to utilize the De Minimis Safe Harbor. Ray will be the partnership representative. None of the partners contributed any property with a built-in capital gain or loss. Additional info for them is as follows: Ray Stanz: 309 140th St. NE, Apt 2, New York, NY 10005. (202) 794-2211 Peter Venkman: 644 Broadway, New York, NY 10012. (203) 802-6633 Egon Spengler: 212 112th St. W. Apt 102, New York, NY 10006. (202) 303-5522 GHOSTBUSTERS INC. 2019 DEPRECIATION SCHEDULE ITEM DATE PURCHASED COST$ CAR 8/20/2014 12,000 12,000 BUILDING CONTAINMENT UNIT 6/6/1989 350,000 332,850 CAR NON-RESIDENTIAL REAL PROPERTY 12/9/2017 25,000 14,068 EQUIPMENT 387,000 358,918 TOTAL PREVIOUS DEPRECIATION$ CATEGORY METHOD MACRS 200 DB MACRS SL MACRS 200 DB LIFE CONVENTION 5 HALF YEAR 31.5 MID MONTH 7 HALF YEAR