7. Noah and Joan own rental property located at 6431 Gary Ct., San Diego, CA 92115.

The revenue and expenses for the year are as follows:

Rent Income $14,000 Insurance 550 Interest expense 7,000 Property taxes 1,000 Miscellaneous expenses 600 Depreciation (The house was acquired in 1990) 3,000 Required: Although Noah and Joan do not believe their tax return will be unduly complicated, they do realize their limitations and come to you for assistance. You are to prepare their federal income tax return in good form, signing the return as the preparer. Do not complete a California state income tax return. Assume any other information (addresses, etc.) that you may need. The following forms and schedules are required:

Form 1040 Schedule E Schedule A Schedule M Schedule B Schedule SE Schedule C Form 2441 Schedule D Note: The forms included in Appendix D are provided for the student to work only one of the two comprehensive problems. If desired, additional forms may be obtained from the IRS Web site at www.irs.gov.