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

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

Net income (loss) per return

Schedule L — Balance Sheets per Books

	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