PRIMA DONNA PARTNERSHIP
The Prima Donna Partnership was formed ten years ago as a general partnership to custom tailor women's clothing. Prima Donna is located at 123 Flamingo Drive in Haines City, MO 54321. Mariana Prima manages the business and has a 40% capital and profits interest. Her address is 709 Brumby Way, Haines City, MO 54321. Donna Hart owns the remaining 60% interest but is not active in the business. Her address is 807 Ninth Avenue Haines City, MO 54321. The partnership values its business using the cost method and did not change the method used during the current year. The partnership uses the accrual method of accounting. Because of its simplicity the partnership is not subject to partnership audit procedures. The partnership has no foreign partners, no foreign transactions, no interest in foreign trusts, and no foreign bank accounts. This partnership is neither a tax shelter nor a publicly traded partnership. No changes in ownership of partnership interest occurred during the current year.
The partnership made cash distributions of $155,050 and $232,576 to Prima and Hart, respectively, on December 30, 2014. It made no other cash or property distributions during the year. Assume that the business qualifies as a US production activity and that its qualified production activity income is $600,000. As an eligible small pass-though partnership, uses the small business simplified overall method for reporting these activities.
See the financial statements for the period that follow.
Required: Prepare a 2014 partnership return including all required schedules.
Attachment:- Assignment File.rar