1-{Tax Forms} Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc contributed $2,500 to a traditional individual retirement account, and he also paid alimony to a prior spouse in the amount of $1,500 (under a divorce decree effective June 1, 2006). Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $3,000 child tax credit for Matthew. Marc and Michelle paid $6,000 of expenditures that qualify as itemized deductions (no charitable contributions) and they had a total of $2,500 in federal income taxes withheld from their paychecks during the year.

a-They purchased an investment house for $400,000 with a land value of $60,000 On March 31, 2020, and rented it at the same time. The following are the information related to the rental property:

Rental income for the year $24,000

The mortgage interest paid to banks $2,000

Legal and other professional fees 350

Cleaning and maintenance 600

Advertising 220

Management fees 360

Taxes 1700

Utilities 800

Depreciation method: 27.5 years, Straight-line method

b- Marc also owns a dry-cleaning company (LLC), and the following information are related to his company:

Service revenue ........................................................................................ $20900

salaries expense........................................................................................ 600

rent expired ........................................................................................... 450

Supplies expense....................................................................................... 550

Utilities expense........................................................................................ 200

interest expense........................................................................................ 250

You must complete Marc and Michelles Form 1040 pages 1, 2, and all the necessary Schedule 1 (use the most recent form available). Any deficiency in supporting documents (forms and schedules)