I need solution to this problem ASAP -Ryan Ross (111-11-1111), Oscar Oleander (222-22-2222), ClarkCarey (333-33-3333), and Kim Kardigan (444-44-4444) are equal members in ROCKthe ages, LLC. ROCK serves as agents and managers for prominent musicians inthe Los Angeles area. The LLC’s Federal ID number is 55-5555555. It uses thecash basis and the calendar year and began operations on January 1, 2000. Itscurrent address is 6102 Wilshire Boulevard, Suite 2100, Los Angeles, CA 90036.ROCK was the force behind such music icons as Rhiannon and Ulster and has had avery profitable year. The following information was taken from the LLC’s incomestatement for the current year:Revenues: Fees andcommissions  $4,800,000 Taxable interestincome from bank deposits 1,600 Tax-exemptinterest  3,200 Gains and losseson stock sales   4,000   Total revenues$4,808,800Expenses: Advertising andpublic relations $  420,000 Charitablecontributions 8,000 Section 179expense20,000 Employeesalaries  1,200,000 Guaranteedpayment, Ryan Ross, office manager600,000 Guaranteedpayment, other members 900,000 Entertainment,subject to 50% disallowance  48,000 Travel 120,000 Legal andaccounting fees108,000 Office rentalspaid  86,000 Interest expenseon operating line of credit 6,000 Insurancepremiums16,000 Office expense60,000 Payroll taxes96,000 Utilities12,000 Totalexpenses $3,700,000 Duringthe past couple of years, ROCK has taken advantage of bonus depreciation andsection 179 deductions and fully remodeled the premises and upgraded itsleasehold improvements. This year, ROCK wrapped up its remodel with thepurchase of $20,000 of office furniture for which it will claim a section 179deduction. (For simplicity, assume that ROCK uses the same cost recoverymethods for both tax and financial purposes.) There is no depreciationadjustment for alternative minimum tax purposes. ROCKinvests much of its excess cash in non-dividend-paying growth stocks, andtax-exempt securities. During the year, the LLC sold two securities. On June15, 2011, ROCK purchased 1,000 shares of Tech, Inc. stock for $72,000; it soldthose shares on December 15, 2011, for $60,000. On March 15, 2005, ROCKpurchased 2,000 shares of BioLabs, Inc. stock for $104,000; it sold thoseshares for $120,000 on December 15, 2011. Netincome per books is $1,108,800. The firm’s activities do not constitute“qualified production activities” for purposes of the section 199 deduction. OnJanuary 1, 2011, the members’ capital accounts equaled $160,000 each. Noadditional capital contributions were made in 2011. In addition to theirguaranteed payments, each member withdrew $240,000 cash during the year. TheLLC’s balance sheet as of December 31, 2011, is as follows:Beginning EndingCash  $  340,000 ??Tax-exempt securities  80,000 80,000Marketable securities420,000 600,000Leasehold improvements, furniture, and equipment   820,000 840,000Accumulated depreciation  (820,000) (840,000) Totalassets $  840,000 ??Operating line of credit  $  200,000 $ 160,000Capital, Ross  160,000   ??Capital, Oleander160,000   ??Capital, Carey160,000   ??Capital, Kardigan  160,000   ?? Totalliabilities and capital$  840,000   $ ?? Assumethat all debt is shared equally by the members. Each member has personallyguaranteed the debt of the LLC. None ofthe members, all of whom are U.S. citizens, sold any portion of their interestsin ROCK during the year. All of the entity’s financial operations areconcentrated in California. The LLC had no foreign bank accounts or operationsand no interest in any U.S. or foreign trusts, corporations, or partnerships.The LLC is not publicly traded and is not a statutory tax shelter. The LLC isnot subject to consolidated audit procedures. Ryan Ross is the tax matterspartner. Thebusiness code for “Agents and Managers for Artists, Athletes, Entertainers, andOther Public Figures” is 711410. ROCK is not a partner in any otherpartnership. The LLC’s form 1065 was prepared by Ryan Ross and sent to the Ogden,UT IRS Service Center. All members are active in LLC operations.a) Prepare form 1065, Schedule K, and relevant supportingschedules for ROCK the Ages, LLC, leaving blank any items where insufficientinformation has been provided. If you are using tax return preparationsoftware, also prepare Form 4562 and Schedule D. (Note: You can assume that theanswer to each “yes/no” question on Form 1065, page 3 is “no” unless otherwisediscussed above.)b) Prepare Schedule K-1 for Ryan Ross, 15520 W. Earlson Street,Pacific Palisades, CA 90272 partnershiptaxreturnproject2.docx