1:10-50 TAX FORM/RETURN PREPARATION PROBLEMS Thom Jones (SSN 000-00-1111) is an unincorporated manufacturer of widgets. He uses the LCM method to value his inventory and reports the following for 2017: Sales (less returns and allowances) $1,250,000 Cost of goods sold 500,000 Office expenses 10,000 Depreciation" Legal services 4,000 Salary expenses 36,000 Travel expenses 30,000 Repair expenses 20,000 * Information related to Mr. Jones's depreciation: Cost of office furniture acquired and placed in service on April 15, 2017 (7-year recovery). $480,000 Cost of other property acquired and placed in service on August 1, 2017: 5-year recovery property (computers-not listed property) 7-year recovery property (equipment) 54,000 Depreciation on assets purchased prior to 2017 28,000 Complete Thom's 2017 Form 4562 and Schedule C of Form 1040, assuming Thom elects to expense the maximum amount possible under Sec. 179 but elects out of bonus depreciation. 6,000 1:10-50 TAX FORM/RETURN PREPARATION PROBLEMS Thom Jones (SSN 000-00-1111) is an unincorporated manufacturer of widgets. He uses the LCM method to value his inventory and reports the following for 2017: Sales (less returns and allowances) $1,250,000 Cost of goods sold 500,000 Office expenses 10,000 Depreciation" Legal services 4,000 Salary expenses 36,000 Travel expenses 30,000 Repair expenses 20,000 * Information related to Mr. Jones's depreciation: Cost of office furniture acquired and placed in service on April 15, 2017 (7-year recovery). $480,000 Cost of other property acquired and placed in service on August 1, 2017: 5-year recovery property (computers-not listed property) 7-year recovery property (equipment) 54,000 Depreciation on assets purchased prior to 2017 28,000 Complete Thom's 2017 Form 4562 and Schedule C of Form 1040, assuming Thom elects to expense the maximum amount possible under Sec. 179 but elects out of bonus depreciation. 6,000