Accounting

Maria A. Solo (SSN 318-01-6921) lives at 190 Glenn Drive, Grand Rapids, Michigan 49527- 2005. Maria (age 45 and single) claims her aunt Selda Ray (SSN 282-61-4011) as a dependent. Selda lives with Maria. Maria owns and operates the Reliable Drug Store at 1816 First Street in Grand Rapids, Michigan 49503-1902, in which she materially participates the entire year. Her EIN is: 38-9654321.Employer quarterly payroll tax returns were filed as required, and Maria reports n the accrual method, but used the direct write-off method to compute bad debt expense. Her business code is 4461 10. She does not deduct expenses for an office in her home. An examination of Maria's business records reveals that the depreciable property includes furniture and fixtures, a delivery truck, and store equipment. The depreciation expense shown on the 2019 income statement meets the income tax requirements for depreciation for using the mentioned assets during 2019. Maria rounds calculations to the nearest dollar. Miscellaneous expenses include the following: Contributions to the Red Cross $ 350 Chamber of Commerce 125 Personal Electric Bill for August 80 Total Miscellaneous Expenses: $ 555 Maria also pays $4,500 in State Income Estimated Taxes for 2019; and, property taxes on her personal vehicles of $450; in addition to her personal mortgage interest of $7,000. Further, she has evidence of church contributions of $2,000 in the form of a letter from her church. Other income for Maria includes a salary of $100 each month for her services as a member of a working committee of the Drug Association. Her Form W-2 from the Association shows wages of $1,200 and federal income tax withheld of $296. Through her work as an employee of the Drug Association. Maria is able to purchase her own full year health insurance coverage for $500 per month. She also had $1,000 of out of pocket medical expenses. Thus, Maria is compliant with the ACA mandate. Maria also earned $320 in taxable interest. Maria made federal estimated tax payments totaling 1040 - Page 2. $5,000 during 2019. This amount is reported on Schedule 5 (Form 1040), and on line 17 of Form Maria has some rental property - her former personal residence. It was rented for the entire year to the same lessee; and, its address is 123 Liberty Street, Grand Rapids, Michigan 49503-1902. Maria should use Schedule E to report her Rental Income and Expenses. She has had the following transactions for the rental property: Gross Rents: Depreciation $12,000 Repairs 3,000 ($1,000 per month) Sewer 3,500 Mortgage Interest 600 Insurance 1,500 Property Taxes 550 1,200