ANSWER ASAP ACCOUNTING CHAPTER 3

ANSWER ASAP ACCOUNTING CHAPTER 3

Comprehensive Rroblem 3-1 Kes (Dirthdate July 1, 1p90) and Amy (birthdate July 4, 1992) Doth have brought pou the folmwieg intormation regarding ineit income, expenaes, and *hihelding for the veat. They are unsure which of these teins must be used to caiculate taxable income. 2023, heny had the fedtewing inceme and expenset. Amy treets inventofy as Fomrincidental materials and supplies. This year, Amy loanhd a frierd 110,000 so that he could make an inyestrent. Instesd of making the investment, the frend iust all the money 3ainhhing and leh for perts irknown. Amy has ma hoge of erver collerting on this bait debte. Ken, whe ordinseity nerer gamteet. man 110,000 at a easino bithday garty for one of his miests. 3456 (Ken) and 123-45-7e96 (Amy). Ken and Amy can claim a $500 echer depessent credit fer each parent. kan and Amy receved a 45,600 EtP in Hequiredi Lappayer nants to contriste to the presitential election campoign. A statirfent s required to be attached to a motas der a hontwines bad debt, fut bus requiremert miy be ignared for this problem. You may ianore any fe ated uef-emplovitient kases. Rssume ne 10.99 -B is tied in association with the bad debt when filing but form a949. - You may need to complete the ether forms belore completing the Form 1040 . - If an ampunt box does not require an entry or the answer is tero, enter " 0. - If reedired, round amounts to the nearest deliar. - Enter all ameonts at potitive numbers. Howeyer, if required, sse the minus sign to enter a Flos:". Standard Deduction Age/Blindness vout thone : 1 mages, splares, tim, elc Atach formis) W-2. 17 Amount from Schedole 2 , line 3 . 18. Add unes 16 and 17 19. Nonrefundahle child tas oredt or creoit for ether dependents from Schedule bati? 20. Amouns from schedule 3 , sine 3 21 Add lines 19 and 20 22 frubtract line 21 frem line 11. If aers or less, eater -0 . 23 other taxes, incuuding seifiemployment tax, from schedule 2, line 21 24 Add lines 22 and 23. This in rour tetat tax as rederal incoene las wiorest hom! a fermsi Wr? b formis) 1cog e Outer forme (aee inatruticond a Mdd ines 25 a tringh 2 Ke Designee Here. bried on all information of which preparer has any knowiedoe. SCHEDULE 1 (Form 1040) Additional Income and Adjustments to Income 2021 Nisec(i) shewe an Ferin 1040, 1040-SA, or 1040-1AR Your social security number Ken and Amy Beoth 341753456 Part 1 Additional Inconse 2. Nimony rectived - Oun of enpins diwore or upperatis agreenent (iee iutrictions) b 3 Buneas incamie of (loss), Alach Ichedule C 6. Form inceme or (0oss), Attach 5chesule F 7 Uiemponment compe-tation - Oher namei a wec operating leat b Gamibing income e Cancerlation ef dett. a forigian eanien income exdubas froin form 2sss - Farabie Heath 5 erings Ancount diturtution f. Alaska Pareanant Funs cinsenes - Jury dav aey A. Frimes and atwents. (7. Tokat ather inceme, Mas lites 89 through Ri For Paperwork Hedwection Act Notice, see your tax return instructions. Theithat Hotedine 6 unily the inpified methed. 5 mee instriciost. Simplified methbd fiters entyi Dnier the total square foseage of (a) yeur hormei and (b) the part of rour kume used for businest: Woe the Simpthed lethed Worktheet in the instructions ts hpure the 31. Met proft or (inks). Suchrbet kne 10 figm ane 24 . * if a kisi, you must ge to lint in. 1041,16+3. 43. When did rou pipce veur vehide in service tor bunineis purpeses? (montridawlyear) b n tusinem b commiting cke instructions) 45. Was vour whicle aseilabla for persannal use durtegetiduly heurs? Part I short-Term Capitai Cains and Losses-Generally Assets Held One Year or Less (oen nutrocoen) tarie 1.7 tellak. - If behe 16 is a lesi, skip lines 17 turough 20 beiow. Then, ge to line 21 . Aso be sure be complete linatzz. 7. Thef, ge tis lite 2? 17 Mre brien 15 and 16 both gevis) res. cos tin irie in. No. skio ines th through 21 , and 9g to ine 22 . Comprehensive Problem 3-1 2021. Amip hat the dy vining inome and eapenses! Atry kreats itreentery zs nen-incidemat inateriait and supplies. This year, Amr doaned a friend s to, oco wa that he could make an investment. tastead of making the investritent, the friend bat all the monity gombing and ief for parts unkinem. Amy has no hope of ever colecting on this bad debt. 2021 Requiredi taspaper patts ta conitrbute to the presidential plection cambaigs. A statement in required to be attactod to a refurn for a nontsueness bad debt, but thy reguirement may be ignered for ehis preblem. You may laner ariy reiated sef-amploymert taxes: Asmume no 1099 -D is fied in associatien mith ine bad debt when niang eut form 8v49 * You may need to complete the other forms before cempleting the Form 1040. * If an amount box does net require an entry or the answer is zero, enter " g2, + If required, round anounts to the nearest dollar. * Enter all ameunts as positive nambers. However, if required, use the minus siga te enter a "loss". For Disdosure, Privacy Act, and Paperwerk Reduction Act Notice, see separate instructions. Cat, Nis. 113200 Form 1040 (2021) Camphele the Berith's schedule I. SCHEDULE 1 (Feren 1040) Additional Income and Adjustments to Income Department of the Tieatury Attach te Farm 1040, 1040-5n, er 1040-NR. internal Aetvenue Service. Name(s) shown on Form 1040, 1040-52, ar 1040-kR Wen and Amy Eooth Part I Adaitional Inceme. 1 Tneabie refunds, oredti, or effeets of state and lock income taxes 2. Nimaty recelved b Bate of anghal dieirce or stparatian apoeited (bet inutryctionv) * 3 fusiness intsme or (iocs). Attach schedule C 4 ouser geve or (lesises), Atiach Form 4797 5 fertal ral estaie, ruyallies, partnershigs, 5 comporations, thats, etc Atach Sehpoule t 6. Farm inceme of (leat. Actach 5 shedule F 7 Unemolormeni comperisaten a otherincome. a ket operating lests b thamting income - Canceliation of debt d. Fornigo earned naeme exoution from form 2455 e Truable Heath Savenge Accoust astribution Greak My werk 1 Compiete Arry Rooth's schedule f: E Guiness address (inciuding tute or room Mo.) 7 . 2000 Broadway street Civ, town of post office, itate, and ze code Menomonie, wi s47s1 f. Accounting methodi (1) =Cish (2) in Acoval (3) 0 ooner (ipecify) 6 Gid you "materialy partiopatet in the operation of this bukines during 20217 if Tio," see instructions for umit an Hosses Hf If you startid or atquired this busineis during 2021, check here. Did yed make any payments in 2021 that wovld enuire you to file Fornks) 10\%pr see instruction: Ves = No 3. If "Yes," dia you er wil you file requiced ferm(s) 1099? Yes Ne Part I Income Cheak Mork foem W.d and the restabutery employert toax on that ferms wat theked. 2. Feturns and adewakces 3 Suberact hine 2. frow line 1 4. Cest of geodk abla (frem ime A2) 5 Gross profit. Sutrati ine i from ine 1 e tather inspme, incleding federal and state ganoline ar fuel tas credit or refund (see instructons) 7. Gross income. Add lines 5 and tr. Mortgage (paid to banks, ete.) b other 17. Legat and professional services 31 Net profit or (loss). Sututrat sne 30 trom line 20 . * If a profit, enter on both Schedule 1 (form 1046), Hine 3, and on Schedute st, lise 2. (It rou thecked the box on ane 1, see instructions). Latates and truss, enter on Form 10a1, line 3 - if a lost, you must go to line 32 . 32 If yeu have a loss, check the box that deseribes your imestment in this adivity, See instructions: 1041, une 3. - If you checked 32b, you must attach Form 6198. Your loas may be limited. not at risk: For Paperwork Reduction Act Notice, see the separate instructions. Cat. F4. 11334P Schedule C (Form 1040) 2021. Sclvedule C (farm 1040) 2021 123457890 Pase 2 Part III Cost of coods sold (ses instructions) 33 Method(s) used to 34 Was there anf charge in determing guant oes, couss, or valuations betimeenidpering and deuieg imrentiory? if "rei, andash eicianation 36. Aurehases less code of iltems withdrawn far perwonal iote 37. Cuat of latac. De nct initude ary arnourta pad to youryeit. 38 Mabetiah and mupbles 39 ather copth . 49 Mdd lunet 15 thengh 39 41 Imveiory at enat of war Bart IV 3 Arairatis. - Conninuting (ies inuerustiona) is olian (i) If "res." is the ewience mutioni? Other. Cwact My wher If "res," attadi Form 3949 and are its instructions for addeienal redurements for itooting vour gain of loss. Part 1 shert-Term Capital Gains and Losses-Geoerwily A ssets Held One Year or Less (see instructiont) 7 Net short-term capital gain or (less), corosine ines la through 6 in column (h). If you have any iong-term. cipieat goins or lestes, go to Part it below. Otherwise, go to Part IIt on the back.. Part It Long-Term Capital Gains and Losses-Generally Assets Held More Than One Year (see instructions) 11 Gain from form 4795, Paet t; isng-torm gain from Forms 2439 and 6252; and long-term gain or (less) from Forms 4684, 67et, and 5824 12. lett Ieng-term gain or (loss) from partnerships, 5 corperations, estates, and trusts from schedule(s) 1 13 Capital gain distributions. See the instructions 14 Long-term capital losi cerryover. Enter the amount, if avy, from line 13 of your Capital Loss Carryover Worksheet in the instrictions 15. Met long-term capital gain or (loss). Combine ines sa theough 14 in column (b). Then, go to Part 11 on the If Combine ines 7 and 15 and enter the retitt ta line 17 below 7. Thery to to ise 22 17. Wre fires is anet 56 both garsi? Yes. Co ta line 18 . Wo. Stip inrs 18 trongh 21 , and ge be ire 22 . any, Now lne 7 of that warkinent. 20 Mos ines 18 and 19 both zera or blank and are you not hing form 4y327. Yes. Crmpiete in= Quatified Dividends and Capital Gain Tax Worksheet in the inieructionit for Forms 1040 and 1040-5R, lre 16 . Don't cemplete Inei 21 anid 22 beluw. No. Gemplete the Schedule D Tax Worksheet in the instrusticns. Don't copnglefe Lnes 21 and 22 below. * Tere lods eat ine 1 fi ar tansactions, set sast 2 . 8 Comprehensive Rroblem 3-1 Kes (Dirthdate July 1, 1p90) and Amy (birthdate July 4, 1992) Doth have brought pou the folmwieg intormation regarding ineit income, expenaes, and *hihelding for the veat. They are unsure which of these teins must be used to caiculate taxable income. 2023, heny had the fedtewing inceme and expenset. Amy treets inventofy as Fomrincidental materials and supplies. This year, Amy loanhd a frierd 110,000 so that he could make an inyestrent. Instesd of making the investment, the frend iust all the money 3ainhhing and leh for perts irknown. Amy has ma hoge of erver collerting on this bait debte. Ken, whe ordinseity nerer gamteet. man 110,000 at a easino bithday garty for one of his miests. 3456 (Ken) and 123-45-7e96 (Amy). Ken and Amy can claim a $500 echer depessent credit fer each parent. kan and Amy receved a 45,600 EtP in Hequiredi Lappayer nants to contriste to the presitential election campoign. A statirfent s required to be attached to a motas der a hontwines bad debt, fut bus requiremert miy be ignared for this problem. You may ianore any fe ated uef-emplovitient kases. Rssume ne 10.99 -B is tied in association with the bad debt when filing but form a949. - You may need to complete the ether forms belore completing the Form 1040 . - If an ampunt box does not require an entry or the answer is tero, enter " 0. - If reedired, round amounts to the nearest deliar. - Enter all ameonts at potitive numbers. Howeyer, if required, sse the minus sign to enter a Flos:". Standard Deduction Age/Blindness vout thone : 1 mages, splares, tim, elc Atach formis) W-2. 17 Amount from Schedole 2 , line 3 . 18. Add unes 16 and 17 19. Nonrefundahle child tas oredt or creoit for ether dependents from Schedule bati? 20. Amouns from schedule 3 , sine 3 21 Add lines 19 and 20 22 frubtract line 21 frem line 11. If aers or less, eater -0 . 23 other taxes, incuuding seifiemployment tax, from schedule 2, line 21 24 Add lines 22 and 23. This in rour tetat tax as rederal incoene las wiorest hom! a fermsi Wr? b formis) 1cog e Outer forme (aee inatruticond a Mdd ines 25 a tringh 2 Ke Designee Here. bried on all information of which preparer has any knowiedoe. SCHEDULE 1 (Form 1040) Additional Income and Adjustments to Income 2021 Nisec(i) shewe an Ferin 1040, 1040-SA, or 1040-1AR Your social security number Ken and Amy Beoth 341753456 Part 1 Additional Inconse 2. Nimony rectived - Oun of enpins diwore or upperatis agreenent (iee iutrictions) b 3 Buneas incamie of (loss), Alach Ichedule C 6. Form inceme or (0oss), Attach 5chesule F 7 Uiemponment compe-tation - Oher namei a wec operating leat b Gamibing income e Cancerlation ef dett. a forigian eanien income exdubas froin form 2sss - Farabie Heath 5 erings Ancount diturtution f. Alaska Pareanant Funs cinsenes - Jury dav aey A. Frimes and atwents. (7. Tokat ather inceme, Mas lites 89 through Ri For Paperwork Hedwection Act Notice, see your tax return instructions. Theithat Hotedine 6 unily the inpified methed. 5 mee instriciost. Simplified methbd fiters entyi Dnier the total square foseage of (a) yeur hormei and (b) the part of rour kume used for businest: Woe the Simpthed lethed Worktheet in the instructions ts hpure the 31. Met proft or (inks). Suchrbet kne 10 figm ane 24 . * if a kisi, you must ge to lint in. 1041,16+3. 43. When did rou pipce veur vehide in service tor bunineis purpeses? (montridawlyear) b n tusinem b commiting cke instructions) 45. Was vour whicle aseilabla for persannal use durtegetiduly heurs? Part I short-Term Capitai Cains and Losses-Generally Assets Held One Year or Less (oen nutrocoen) tarie 1.7 tellak. - If behe 16 is a lesi, skip lines 17 turough 20 beiow. Then, ge to line 21 . Aso be sure be complete linatzz. 7. Thef, ge tis lite 2? 17 Mre brien 15 and 16 both gevis) res. cos tin irie in. No. skio ines th through 21 , and 9g to ine 22 . Comprehensive Problem 3-1 2021. Amip hat the dy vining inome and eapenses! Atry kreats itreentery zs nen-incidemat inateriait and supplies. This year, Amr doaned a friend s to, oco wa that he could make an investment. tastead of making the investritent, the friend bat all the monity gombing and ief for parts unkinem. Amy has no hope of ever colecting on this bad debt. 2021 Requiredi taspaper patts ta conitrbute to the presidential plection cambaigs. A statement in required to be attactod to a refurn for a nontsueness bad debt, but thy reguirement may be ignered for ehis preblem. You may laner ariy reiated sef-amploymert taxes: Asmume no 1099 -D is fied in associatien mith ine bad debt when niang eut form 8v49 * You may need to complete the other forms before cempleting the Form 1040. * If an amount box does net require an entry or the answer is zero, enter " g2, + If required, round anounts to the nearest dollar. * Enter all ameunts as positive nambers. However, if required, use the minus siga te enter a "loss". For Disdosure, Privacy Act, and Paperwerk Reduction Act Notice, see separate instructions. Cat, Nis. 113200 Form 1040 (2021) Camphele the Berith's schedule I. SCHEDULE 1 (Feren 1040) Additional Income and Adjustments to Income Department of the Tieatury Attach te Farm 1040, 1040-5n, er 1040-NR. internal Aetvenue Service. Name(s) shown on Form 1040, 1040-52, ar 1040-kR Wen and Amy Eooth Part I Adaitional Inceme. 1 Tneabie refunds, oredti, or effeets of state and lock income taxes 2. Nimaty recelved b Bate of anghal dieirce or stparatian apoeited (bet inutryctionv) * 3 fusiness intsme or (iocs). Attach schedule C 4 ouser geve or (lesises), Atiach Form 4797 5 fertal ral estaie, ruyallies, partnershigs, 5 comporations, thats, etc Atach Sehpoule t 6. Farm inceme of (leat. Actach 5 shedule F 7 Unemolormeni comperisaten a otherincome. a ket operating lests b thamting income - Canceliation of debt d. Fornigo earned naeme exoution from form 2455 e Truable Heath Savenge Accoust astribution Greak My werk 1 Compiete Arry Rooth's schedule f: E Guiness address (inciuding tute or room Mo.) 7 . 2000 Broadway street Civ, town of post office, itate, and ze code Menomonie, wi s47s1 f. Accounting methodi (1) =Cish (2) in Acoval (3) 0 ooner (ipecify) 6 Gid you "materialy partiopatet in the operation of this bukines during 20217 if Tio," see instructions for umit an Hosses Hf If you startid or atquired this busineis during 2021, check here. Did yed make any payments in 2021 that wovld enuire you to file Fornks) 10\%pr see instruction: Ves = No 3. If "Yes," dia you er wil you file requiced ferm(s) 1099? Yes Ne Part I Income Cheak Mork foem W.d and the restabutery employert toax on that ferms wat theked. 2. Feturns and adewakces 3 Suberact hine 2. frow line 1 4. Cest of geodk abla (frem ime A2) 5 Gross profit. Sutrati ine i from ine 1 e tather inspme, incleding federal and state ganoline ar fuel tas credit or refund (see instructons) 7. Gross income. Add lines 5 and tr. Mortgage (paid to banks, ete.) b other 17. Legat and professional services 31 Net profit or (loss). Sututrat sne 30 trom line 20 . * If a profit, enter on both Schedule 1 (form 1046), Hine 3, and on Schedute st, lise 2. (It rou thecked the box on ane 1, see instructions). Latates and truss, enter on Form 10a1, line 3 - if a lost, you must go to line 32 . 32 If yeu have a loss, check the box that deseribes your imestment in this adivity, See instructions: 1041, une 3. - If you checked 32b, you must attach Form 6198. Your loas may be limited. not at risk: For Paperwork Reduction Act Notice, see the separate instructions. Cat. F4. 11334P Schedule C (Form 1040) 2021. Sclvedule C (farm 1040) 2021 123457890 Pase 2 Part III Cost of coods sold (ses instructions) 33 Method(s) used to 34 Was there anf charge in determing guant oes, couss, or valuations betimeenidpering and deuieg imrentiory? if "rei, andash eicianation 36. Aurehases less code of iltems withdrawn far perwonal iote 37. Cuat of latac. De nct initude ary arnourta pad to youryeit. 38 Mabetiah and mupbles 39 ather copth . 49 Mdd lunet 15 thengh 39 41 Imveiory at enat of war Bart IV 3 Arairatis. - Conninuting (ies inuerustiona) is olian (i) If "res." is the ewience mutioni? Other. Cwact My wher If "res," attadi Form 3949 and are its instructions for addeienal redurements for itooting vour gain of loss. Part 1 shert-Term Capital Gains and Losses-Geoerwily A ssets Held One Year or Less (see instructiont) 7 Net short-term capital gain or (less), corosine ines la through 6 in column (h). If you have any iong-term. cipieat goins or lestes, go to Part it below. Otherwise, go to Part IIt on the back.. Part It Long-Term Capital Gains and Losses-Generally Assets Held More Than One Year (see instructions) 11 Gain from form 4795, Paet t; isng-torm gain from Forms 2439 and 6252; and long-term gain or (less) from Forms 4684, 67et, and 5824 12. lett Ieng-term gain or (loss) from partnerships, 5 corperations, estates, and trusts from schedule(s) 1 13 Capital gain distributions. See the instructions 14 Long-term capital losi cerryover. Enter the amount, if avy, from line 13 of your Capital Loss Carryover Worksheet in the instrictions 15. Met long-term capital gain or (loss). Combine ines sa theough 14 in column (b). Then, go to Part 11 on the If Combine ines 7 and 15 and enter the retitt ta line 17 below 7. Thery to to ise 22 17. Wre fires is anet 56 both garsi? Yes. Co ta line 18 . Wo. Stip inrs 18 trongh 21 , and ge be ire 22 . any, Now lne 7 of that warkinent. 20 Mos ines 18 and 19 both zera or blank and are you not hing form 4y327. Yes. Crmpiete in= Quatified Dividends and Capital Gain Tax Worksheet in the inieructionit for Forms 1040 and 1040-5R, lre 16 . Don't cemplete Inei 21 anid 22 beluw. No. Gemplete the Schedule D Tax Worksheet in the instrusticns. Don't copnglefe Lnes 21 and 22 below. * Tere lods eat ine 1 fi ar tansactions, set sast 2 . 8