Name of organization: Clutch and Stuff, LLC. Address: 355 Main Street Your City,
ID: 2567806 • Letter: N
Question
Name of organization: Clutch and Stuff, LLC. Address: 355 Main Street Your City, YS XXXXX Contact phone number: (XXX) 555-6402 Email: clutchandstuffpurses@net.net EIN: 64-6499002
Entity Type: Domestic limited liability company Website: clutchandstuffpurses.com
Authorize IRS to discuss return: Yes
Date incorporated: February 01, 2006 Member signing the return: Jessica Clutch Member SSN: 747-64-1002 Number of Members: 2 Jessica Clutch and Briana Rawlins are members of Clutch and Stuff, LLC, a company that sells purses.
Clutch & Stuff, LLC is an accrual-basis company and has a fi scal year-end of January 31. During 2016, Clutch & Stuff had the following income and (expenses):
Cash sales: $ 215,327
Credit sales: $ 8,256
Interest income: $ 6,525
Returns and allowances: ($ 5,257)
Guaranteed payments: ($ 30,000)
Salaries (not associated with COGS): ($ 24,000)
Display windows: ($ 750)
Rental fees: ($ 12,000)
Utilities: ($ 5,025)
Packaging: ($ 4,290)
Beginning inventory: ($ 3,525)
Purchases $ 85,327
Ending inventory $ 4,925
1) Based on the information above, what is the 2016 cost of goods sold (COGS) amount?
A) $93,777
B) $88,852
C) $83,927
2) What is the amount of total deductions reported on Form 1065, line 21?
A) $76,065
B) $81,322
C) $161,392
D) $166,649
3) What is the gross profit for 2016?
A) $224,851
B) $134,399
C) $132,999
4)How much income (loss) is reported on Form 1065, Schedule K, line 5?
A) $0
B) $5,256
C) $6,525
D) $14,781
Explanation / Answer
1. option C C) $83,927 (3525+85327-4925)
2. option A A) $76,065 (24000+750+12000+5025+4290+30000)
3. option B B) $134,399 (215327+8256-5257)-(3525+85327-4925)
4. option C) $6,525 (interest income)
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