![]() ![]() Prepare a current year partnership tax return for Dapper-Dons Partnership. Dapper-Dons, being an eligible small pass-through partnership, uses the small business simplified overall method for reporting these activities (see discussion for Line 13d of Schedules K and K-1 in the Form 1065 instructions). production activity and that its qualified production activities income is $600,000. Assume that Dapper-Dons’ business qualifies as a U.S. ![]() Financial statements for the current year are presented in Tables C:9-1 and C:9-2. The partnership made cash distributions of $155,050 and $232,576 to Dapper and Dons, respectively, on December 30 of the current year. No changes in ownership of partnership interests occurred during the current year. This partnership is neither a tax shelter nor a publicly traded partnership. The partnership has no foreign partners, no foreign transactions, no interests in foreign trusts, and no foreign financial accounts. Because of its simplicity, the partnership is not subject to the partnership audit procedures. The partnership uses the accrual method of accounting. The partnership values its inventory using the cost method and did not change the method used during the current year. His address is 807 Ninth Avenue, City, ST, 54321. Jeremy Dons owns the remaining 60% interest but is not active in the business. His address is 709 Brumby Way, City, ST, 54321. ![]() Bob Dapper manages the business and has a 40% capital and profits interest. Dapper-Dons is located at 123 Flamingo Drive in City, ST, 54321. The Dapper-Dons Partnership was formed ten years ago as a general partnership to custom ![]()
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