ACCT 613 Fall semester 2010 Entity Tax Case The Rite-Way Plumbing Co. began business March 1, 2006 in Sarasota. Its business address is 124 Division...

ACCT 613Fall semester 2010Entity Tax CaseThe Rite-Way Plumbing Co. began business March 1, 2006 in Sarasota. Its business address is 124 Division Lane, Sarasota, FL 33645. Its employer identification number is 69-3456789. Its principal business activity is plumbing installation and repair and its business code number is 238220. It files its income tax returns on the calendar-year basis.The business was formed as a limited partnership by two brothers, John Henry (SSN 555-55-5555) and James Henry (SSN 666-66-6666), who work full-time in the business, and their father Tom Henry (SSN 888-88-8888), the limited partner. The brothers each have a 25% interest in the income, loss, and capital of the business while their father owns a 50% interest in income, loss, and capital, but takes no active interest in the business other than as that of an investor.At the end of 2009, its operations showed cash gross receipts of $1,240,000 and the following cash expenditure items: