Schedule K-1 for 1065 - Drake Software

Drake Software User’s ManualForm 3115, Application for Change in Accounting MethodSchedule CThis section has two parts:• Part I (General LIFO Information) — This section is made up of attachment links(see Figure 48 on page 60). If any of the conditions on lines 1–6 match the entity’ssituation, click the corresponding attachment link to access the ATT screen,where you can complete the required statement. (Select the corresponding linecode from the Schedule drop list on the ATT screen.)• Part II (Change in Pooling Inventories) — Enter the descriptions of the contentsand the base years of the present and proposed pools. If any of the conditions onlines 2–4 match the entity’s situation, click the corresponding attachment link toaccess the ATT screen, where you can complete the required statement.Schedule D,Parts I and IIUse the D - I, II screen to complete the following parts of Form 3115, Schedule D,Change in the Treatment of Long-Term Contracts Under Section 460, Inventories, orOther Section 263A Assets:• Part I, Change in Reporting Income From Long-Term Contracts• Part II, Change in Valuing Inventories Including Cost Allocation ChangesNOTEIf an entity is currently using a LIFO inventory method or submethodand is changing to another LIFO inventory method or submethod, PartII of Schedule D is not applicable. Use Schedule C, Changes Within theLIFO Inventory Method, instead.Schedule D,Part ISchedule D,Part IIA long-term contract refers to any contract for the manufacture, building, installation,or construction of property that is not completed in the tax year in which it is enteredinto. Answer the questions in Part I that apply to the entity’s situation.This section concerns changes in the identification and valuation methods of inventories.Note that some lines require attachments. To access the ATT screen and completea required statement, click the desired attachment link.The items on this part of the screen match the items on the actual Form 3115, ScheduleD. For information on completing individual lines, see the Form 3115 instructions.NOTEIf the entity is unable to furnish a copy of Form 970 (line 5a), the attachmentmust include the following statement:“I certify that to the best of my knowledge and belief (name of applicant)properly elected the LIFO inventory method by filing Form 970 with itsreturn for the tax year(s) ended (insert date(s)) and otherwise compliedwith the provisions of section 472(d) and Regulations section 1.472-3.”Schedule D,Part IIIUse the D - III screen to complete Part III (Method of Cost Allocation) of Form 3115,Schedule D. Part III is required for any entity submitting either Part I or Part II. ScreenD - III consists of the following sections:• Section A, Allocation and Capitalization Methods• Section B, Direct and Indirect Costs Required to be Allocated• Section C, Other Costs Not Required to be AllocatedTax Year 2011 57