1. Beth R. Jordan lives at 2322 Skyview Road. Mesa, AZ 85201. Beth's birthday is July 4, 1972, and her Social Security number is 123-45-6785. Beth is single and has no dependents. Beth had health coverage for the entire year. 2. Beth wants to contribute S3 to the Presidential Election Campaign Fund. 3. Beth is a tax accountant with Mesa Manufacturing Company, 1203 Western Avenue, Mesa, AZ 85201 (EIN 11-1111111). In addition to her job at Mesa, she writes computer software programs for tax practitioners and has a part-time tax practice. For 2018, Beth's Form W-2 from Mesa Manufacturing reports the following items: Line Amount Description Wages, tips, other compensation Federal income tax withheld Social Security wages Social Security tax withheld Medicare wages and tips Medicare tax withheld State State wages, tips, etc. State income tax withheld $65,000.00 10,500.00 65,000.00 4,030.00 65,000.00 942.50 Arizona 65,000.00 1,954.00 4. During the year, Beth received interest of $1,300 from Arizona Federal Savings and Loan and $400 from Arizona State Bank. Each financial institution reported the interest income on a Form 1099-INT. She received qualified dividends of $800 from Blue Corporation, $750 from Green Corporation, and $650 from Orange Corporation. Each corporation reported Beth's dividend payments on a Form 1099-DIV. (Note: qualified dividends are eligible for the long-term capital gains rate, see textbook page 4-15) 5. Beth received a $1,100 income tax refund from the state of Arizona on April 29, 2018. On her 2017 Federal income tax return, she reported total itemized deductions of $8,200, which included $2,200 of state income tax withheld by her employer. 6. Fees earned from her part-time tax practice in 2018 totaled $3,800. She paid $600 in processing costs to have the tax returns processed by a computerized tax retum service. 7. On February 8, 2018, Beth bought 500 shares of Gray Corporation common stock for $17.60 a share. On September 12, 2018, she sold the stock for $14 a share. 8. Beth bought a used sports utility vehicle for $6,000 on June 5, 2018. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, 2018, she sold the vehicle to a friend for $6,500. 9. On January 2, 2018, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She sold the stock on December 19, 2018, for $55 a share. 10. During the year, Beth records revenues of $16,000 from the sale of a software program she developed. She incurred the following expenditures in connection with her software development business Cost of computer Cost of printer Furniture Supplies Fee paid to computer consultant $7,000 2,000 3,000 650 3,500 Beth elected to expense the maximum portion of the cost of the computer, printer, and furniture allowed under the provisions of $ 179. These items were placed in service on January 15, 2018, and used 100% in her business. 11. Although Mesa suggested that Beth attend a convention on current developments in corporate taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending. The $1,420 included $200 for meals. 12. During the year, Beth paid $300 for prescription medicines and $2.875 for medical bills. Medical insurance premiums were paid for her by her employer. 13. Beth paid real property taxes of $1,766 on her home. 14. Interest on her home mortgage (Valley National Bank) was $3,845, and interest to credit card companies was $320. 15. Beth contributed $2,080 to various qualifying charities during the year. 16. Professional dues and subscriptions totaled $350. 17. Beth paid estimated Federal income taxes of $1,000 18. Beth does not want to file electronically 19. Check figures to help you when preparing the return: Taxable income (line 10) Tax overpaid (line 19) $61,467 1,759 ASSIGNMENT: Complete the Beth R. Jordan's Federal income tax return for 2018. In preparing the return, you will need to use Form 1040 (Schedules 1, 4, and 5), Schedules A, B, C, D, SE, Form 8949, and Form 4562 1. Beth R. Jordan lives at 2322 Skyview Road. Mesa, AZ 85201. Beth's birthday is July 4, 1972, and her Social Security number is 123-45-6785. Beth is single and has no dependents. Beth had health coverage for the entire year. 2. Beth wants to contribute S3 to the Presidential Election Campaign Fund. 3. Beth is a tax accountant with Mesa Manufacturing Company, 1203 Western Avenue, Mesa, AZ 85201 (EIN 11-1111111). In addition to her job at Mesa, she writes computer software programs for tax practitioners and has a part-time tax practice. For 2018, Beth's Form W-2 from Mesa Manufacturing reports the following items: Line Amount Description Wages, tips, other compensation Federal income tax withheld Social Security wages Social Security tax withheld Medicare wages and tips Medicare tax withheld State State wages, tips, etc. State income tax withheld $65,000.00 10,500.00 65,000.00 4,030.00 65,000.00 942.50 Arizona 65,000.00 1,954.00 4. During the year, Beth received interest of $1,300 from Arizona Federal Savings and Loan and $400 from Arizona State Bank. Each financial institution reported the interest income on a Form 1099-INT. She received qualified dividends of $800 from Blue Corporation, $750 from Green Corporation, and $650 from Orange Corporation. Each corporation reported Beth's dividend payments on a Form 1099-DIV. (Note: qualified dividends are eligible for the long-term capital gains rate, see textbook page 4-15) 5. Beth received a $1,100 income tax refund from the state of Arizona on April 29, 2018. On her 2017 Federal income tax return, she reported total itemized deductions of $8,200, which included $2,200 of state income tax withheld by her employer. 6. Fees earned from her part-time tax practice in 2018 totaled $3,800. She paid $600 in processing costs to have the tax returns processed by a computerized tax retum service. 7. On February 8, 2018, Beth bought 500 shares of Gray Corporation common stock for $17.60 a share. On September 12, 2018, she sold the stock for $14 a share. 8. Beth bought a used sports utility vehicle for $6,000 on June 5, 2018. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, 2018, she sold the vehicle to a friend for $6,500. 9. On January 2, 2018, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She sold the stock on December 19, 2018, for $55 a share. 10. During the year, Beth records revenues of $16,000 from the sale of a software program she developed. She incurred the following expenditures in connection with her software development business Cost of computer Cost of printer Furniture Supplies Fee paid to computer consultant $7,000 2,000 3,000 650 3,500 Beth elected to expense the maximum portion of the cost of the computer, printer, and furniture allowed under the provisions of $ 179. These items were placed in service on January 15, 2018, and used 100% in her business. 11. Although Mesa suggested that Beth attend a convention on current developments in corporate taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending. The $1,420 included $200 for meals. 12. During the year, Beth paid $300 for prescription medicines and $2.875 for medical bills. Medical insurance premiums were paid for her by her employer. 13. Beth paid real property taxes of $1,766 on her home. 14. Interest on her home mortgage (Valley National Bank) was $3,845, and interest to credit card companies was $320. 15. Beth contributed $2,080 to various qualifying charities during the year. 16. Professional dues and subscriptions totaled $350. 17. Beth paid estimated Federal income taxes of $1,000 18. Beth does not want to file electronically 19. Check figures to help you when preparing the return: Taxable income (line 10) Tax overpaid (line 19) $61,467 1,759 ASSIGNMENT: Complete the Beth R. Jordan's Federal income tax return for 2018. In preparing the return, you will need to use Form 1040 (Schedules 1, 4, and 5), Schedules A, B, C, D, SE, Form 8949, and Form 4562