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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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