ACC421 OL01 (Submit pdf version to the assignment folder) Tax Software Assignment # 2 - Tax Return Problem Nancy Madson, age 24, is single and has no dependents. She is an accountant. She lives at 1701 N. Michigan Avenue, Chicago, IL 60601. Her Social Security number is 405-45- 6789. In January, 2018, Nancy opened her own CPA office located at 820 N. State Street, Chicago, IL 60601. Her business is called Madson Accounting Services. Nancy is a cash basis taxpayer. Nancy's parents continue to provide health insurance for her under their policy. Nancy wants to contribute to the Presidential Election Campaign Fund. During 2019, Nancy reported the following income and expense items connected with her business. Nancy purchased and placed in service the following fixed assets for her business. Nancy wants to elect immediate expensing under IRC Section 179, if possible. Furniture and fixtures (new) costing $18,600 on January 12 Computer equipment (new) costing $20,000 on July 28. Nancy's itemized deductions include: Nancy paid sales tax of $437 during 2019. Nancy reports interest income of $3,000 on certificates of deposit at Peoples Bank and qualified dividend income of $1,000 from DEF Company, Inc. Nancy made Federal estimated tax payments of $6,000 for 2019 (payments of $1,500 were made on April 15, 2019, June 15, 2019, September 15, 2019, and December 15, 2019). THIS RETURN IS FOR 2019 - TAX LAWS IN EFFECT FOR 2019 WILL APPLY Compute Nancy Madson's 2019 Federal income tax payable (or refund due). The tax forms required for your computations are Forms 1040 (and Schedules 1-3), 4562, 8995 and Schedules A, B C, and SE. You are required to complete the 2019 Federal tax return using 2019 Intuit ProConnect Tax Software . You are required to submit the filing copy of the return in pdf format in D2L (courses) using the link under the assignments tab. Service fee income $95,000 Office rent expense 18,000 Utilities expense 8,200 Supplies expense 2,500 Insurance expense 4,500 Travel (including meals of $1,400) 3,200 State income tax - estimated payments made in 2019 $3,200 Home mortgage interest paid to Centier Bank 5,000 Property taxes on home 3,500 Charitable contribution to her alma mater, Saint Leo 1,300

• Schedule C, line 13 - Depreciation and section 179 expense deduction
• Schedule C, line 31 - Net profit or (loss)
• Form 1040, line 8b - Adjusted gross income
• Form 1040, line 11b - Taxable income