Additional Info The Moores provide you with the following information: Item Mike Ming Joint First Place in Photo contest 10,DDD Bank Interest 55 Capital gains from mutual funds 1,145 Gain on sale of stock 1,050 Life insurance proceeds from death of Ming's friend 100,000 Losses on the sale of stock 3,200 Clark County bond interest 1 250 Dividends of which 75% qualify for reduced tax rates 900 Qualified pretax defined contribution plan distribution 35,000 Prior year short-term capital loss carryover 2,100 Roth IRA distribution 12,DDD State tax refund from prior year 2,500 Traditional IRA distribution 5,DDD Wages 75,000 Ming's Import Business Sales receipts 50,000 Advertising 500 [BAEl] ssaving 7,000 Business Entertainment 2,750 Cost of merchandise sold 35,000 Interest on business loan 2 500 Meals while traveling for business 4,DO0 Refunds for merchandise returned 3,500 Utilities (2nd phone line for home office) 1 500 Ming exclusively uses one room in their home as an office. The room is 250 square feet. Ming elects the simplified method for the home office deduction.Mike and Ming Moore are married and file jointly. Mike is 60 years old and Ming is 62. They have not itemized deductions in the last five years. Complete Lines 1 through Line 7 of Form 1040 and the additional income section of Schedule 1 for the Moores. A Schedule C should also be completed for Ming's import merchandise business. Round to the nearest dollar. Excerpt from page 2 of Form 1040 A B C D 1. Wages, salaries, tips, 123 etc. 2 2a. Tax-exempt interest 123 b. Taxable interest 123 3a. Qualified dividends 123 b. Ordinary dividends 123 4a. IRAs, pensions and 123 1232? 17. Legal and professional services 22 18. Ofce expense 23 19. Pension and profit-sharing plans 24 20. Rent or lease: 25 20a. Vehicles, machinery, and equipment 26 20b. Other business propertyr 27 21. Repairs and maintenance 28 22. Supplies (not included in Part III) 29 23. Taxes and licenses 29 23. Taxes and licenses 30 24. Travel, meals, and entertainment 3? 24a. Travel 32 24b. Deductible meals 33 25. Utilities 34 26. Wages (less employment credits) 35 27. Other expenses (from line 48) 36 28. Total expenses before expenses for business use of home. 0-00 Add lines 8 through 27. 37 29. Tentative prot or (loss). Subtract line 28 from line ?. 0.00 28. Total expenses before expenses for business use of home. 36 Add lines 8 through 27. 0.00 37 29. Tentative prot or (loss). Subtract line 28 from line 7. 0.00 30. Expenses for business use of your home. Do not report these expenses elsewhere. 39 31. Net prot or (loss). Subtract line 3|] from line 29. 0.00 3 3a. Qualied dividends 4a. IRAs, pensions and annuities 5a. Social security b. Ordinary dividends b. Taxable amount 5 benets b. Taxable amount 6. Additional income 6 and adjustments to income. Attach Schedule 1. 7. Adjusted gross 7 income. Combine lines 1 through 6. 0.00 Excerpt from Schedule 1 of Form 1 D40 1-9. Reserved 1 D. Taxable refunds, credits, or offsets of state and local income taxes 11. Alimony received 12. Business income or (loss) 13. Capital gain or (loss) \f1'5 3'6 I? IS 22. Combine the amounts in the far right column. If you don't have any adjustments to income, enter here and on Form 1040, line 6. Adjustments to Income 23. Educator expenses 24. Certain business expenses of reservists, performing artists, and fee-basis government ofcials 0.00 19 25. Health savings account deduction 20 26. Moving expenses for members of armed forces 2? 27. Deductible part of self-employment tax 22 28. Self-employed SEP, SIMPLE, and qualified plans 123 23 29. Self-employed health insurance deduction 123 24 30. Penalty on early withdrawal of savings 123 25 31. Alimony paid 123 26 32. IRA deduction 123 27 33. Student loan interest deduction 123 28 34. Reserved 29 35. Reserved 30 36. Add lines 23 through 35. 0.0037. Subtract line 36 from line 22. Enter here and on Form 1040, 31 . line 6. Excerpt from Schedule c {Form 1 D40} 2 1. Grass receipts or sales 0.00 3 2. Returns and allowances 4 3. Subtract line 2 from line 'I. 0.00 5 4. Cost of goods sold (from line 42) 6 5. Gross prot. Subtract line 4 from line 3. 7 6. Other income, including federal and state gasoline or fuel tax credit or refund 8 7. Gross income. Add lines 5 and 6. 0.00 9 Part II Expenses. Enter expenses for business use of your home only on line 30. I0 8. Advertising 3'? 9. Car and truck expenses 12 10. Commissions and fees 1'3 11. Contract labor 1'4 12. Depletion 1'5 13. Depreciation and section 179 expense deduction 1'6 14. Employee benefit programs (otherthan on line 19) I? 15. Insurance (otherthan health) 18 16. Interest: 19 16a. Mortgage (paid to banks, etc.) 20 1 6b. Other 21 17. Legal and professional services