Wayne Company is located at 90 Fifth Avenue New York City, NY. The company is a general…
Wayne Company is located at 90 Fifth Avenue New York City, NY. The company is a
general partnership using the calendar year and accrual basis for both book and tax
purposes. It engages in the development and sale of specialized self-protection armor.
The employer identification number (EIN) is 99-9999999. The company formed and began
business on January 1, 2016. It has not foreign partners orother foreign dealings. The
company is neither a tax shelter or a publicly traded partnership. The company has made
no distribution other than cash and no changes in ownership have occurred during the
current year. Diana Banner is the Tax Matters Partner. The partnership makes no special
elections.
Information on Partnership Formation:
Two individuals formed the partnership on January 1, 2016: Diana Banner (2500 Island
Way, New York City, NY) and Bruce Parker (890 Arachnid Drive, New York City, NY). For a
30% interest, Banner contributed $600,000 cash. She is an active general partner who
manages the company. For a 70% interest, Parker contributed $1.16 million cash and
1,000 shares of Metro Corporation stock having a FMV of $240,000 at the time of
contribution and a basis of $48,000 when originally acquired on January 2, 2014. Parker is
an active general partner who designs and develops new products. For book purposes, the
company recorded the contribution of stock at FMV.
Inventory and COGS
The company uses the periodic inventory method and prices its inventory using the lower of
FIFO cost or market. Only beginning inventory, ending inventory, and purchases should be
reflected in Schedule A. No other costs or expenses are allocated to cost of goods sold.
The corporation is exempt from the uniform capitalization (UNICAP) rules because average
gross income for the previous three years was less than $10 million. The following
information should also be included on the applicable form:
Attachments:
Partnership-T….pdfSave your time - order a paper!
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