Partnership Tax Return

INSTRUCTIONS
Please use the information below to complete the Form 1065 and the
Schedule K-1 for Malcolm Fox only.
GENERAL COMPANY INFORMATION
Malcolm Fox and Rhonda Ford are equal partners in MFRF LLP, a small
business consulting firm. The partners are not related and are both U.S.
citizens. Malcolm Fox lives at 415 Knight Court in Freeport, ME, 04469, with
a Social Security number of 123-45-6789. Rhonda Ford lives at 123 Main
Street in Freeport, ME, 04469, with a Social Security number of 456-124561.
The limited liability partnership uses the cash basis and the calendar year,
and it began operation on January 1, 2009. The Federal ID for MFRF LLP is
11-1111111 and the current address is 2835 Harbor View Drive, Freeport,
ME, 04469 for.
The partnership placed its $65,000 of furniture and fixtures in service on
January 1, 2009. This year, it claimed $8,119 of depreciation expense for tax
(line 16a and 16c) and financial purposes. No assets were placed in service
in the current year.
On Oct. 15, the partnership sold securities, creating a $4,000 long-term
capital loss. Please enter this directly onto schedule K; there is not enough
information to create the detail.
Net income per books is $200,900. On January 1, 2012, the partners capital
accounts equal $120,000 each. No additional capital contributions were
made in 2012 and each partner made withdrawals of $120,000 during the
year.

MFRF LLP Income Statement

Revenues
Fees collected
800,000
Dividend income (all qualified) 3,600
Taxable business interest
1,400
Tax-exempt interest
2,600
Long-term capital loss
(4,000)
Total revenues
803,600
Expenses
Accounting fees
12,000
Advertising
5,000
Contribution to United Way
2,000
Depreciation expense
8,119
Employee salaries
340,000
Guaranteed payments
140,000
Entertainment
2,600
Travel
12,000
Equipment rental
6,000
Office rentals paid
7,000
Interest expense
4,000
Insurance premiums
2,200
Office expense
20,481
Payroll taxes
25,600
Utilities
15,700
Total expenses
602,700

MFRF LLP Balance Sheet

Assets

January 1, 2012

December 31, 2012

Cash
Tax-exempt securities
Marketable securities
Furniture and equipment
Accumulated depreciation
Total assets

$86,576
52,000
120,000 76,000
65,000
(36,576)
$287,000
======

$84,595
52,000

Liabilities and Equity

January 1, 2012

December 31, 2012

$47,000
120,000
120,000
$287,000
======

$32,000
100,450
100,450
$232,900
=======

Nonrecourse debt on
Equipment
Capital, Fox
Capital, Ford
Total Liabilities and Equity

65,000
(44,695)
$232,900
======