📊 BRACC Tax Lab

Form 1065 — Case 001

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📊 BRACC Tax Lab
Form 1065 • Educational Simulation • Case 001
WORKPAPER A-1 | Client Trial Balance
Account Name Debit / (Credit)
Cash 150,000
Buildings & Equipment 100,000
Accumulated Depreciation (25,000)
Accounts Payable (20,000)
Partner Capital (BOY) (195,000)
Gross Sales (660,000)
Cost of Goods Sold 150,000
Dividend Income (3,500)
Net ST Capital Gain (5,000)
Net LT Capital Gain (12,000)
Salaries & Wages 120,000
Guaranteed Payments 45,000
Rent Expense 36,000
Repairs & Maintenance 8,500
Business Interest Expense 6,000
Investment Interest Expense 2,000
Meals Expense (GL) 4,000
Office Expense 9,000
Book Depreciation 5,000
Section 179 Purchase 10,000
Charitable Contributions 1,500
Entertainment Expense 3,000
Penalties & Fines 1,000
Political Contributions 2,000
Partner Distributions 267,500
📌 Workpaper Note 1

Tax MACRS Depreciation for 2025 is $14,000 .
Form

1065

U.S. Return of Partnership Income

For calendar year 2025 | BRACC Tax Lab Educational Simulation
Page 1 — Income
1a Gross receipts or sales
2 Cost of goods sold
3 Gross profit
Page 1 — Deductions
9 Salaries and wages
10 Guaranteed payments to partners
13 Rent
14 Repairs and maintenance
15 Business interest expense
16a Tax MACRS depreciation
20a Deductible meals — 50%
20b Office expense
20c Entertainment deduction
20d Penalties & fines deduction
20e Political contribution deduction
22 Ordinary business income
Schedule K — Partners' Distributive Share Items
1 Ordinary business income
4a Guaranteed payments
6a Ordinary dividends
8 Net short-term capital gain
9a Net long-term capital gain
12 Section 179 deduction
13a Charitable contributions
13b Investment interest expense
Analysis of Net Income
1 Net income (loss) per return
Schedule L — Balance Sheets per Books
Assets Beginning Ending
1 Cash
9a Buildings & Equipment
9b Accumulated depreciation
14 Total assets

Liabilities & Partners' Capital Beginning Ending
15 Accounts payable
21 Partners' capital accounts
22 Total liabilities and capital
Schedule M-1 — Book-to-Tax Reconciliation
1 Net income per books
4b Meals disallowed
4c Entertainment disallowed
4d Penalties & fines
4e Political contributions
6a Tax depreciation over book depreciation
9 Income per return
Schedule M-2 — Partners' Capital Accounts
1 Beginning capital
3 Net income per books
6a Partner distributions
9 Ending capital