Brian and Corrine Lee are married taxpayer filing jointly. They live in the home they own, located at 3301 Pacific Coast Hwy. Laguna Beach, CA 92651. Brian is dentist who owns his business; Corrine is a Social worker For Seminole County. They have two sons. Brandy and Hank. During the trip to China last year, they fell in love with beautiful 1-year old girl from an orphanage near Shanghai and are in the process of adopting her. The social security numbers of the four current member of the household are 000-00-000 for Brian 000-000-001 for Corrine 000-00-002 for Brandy and 000-00-003 for Hank. Their birth dates are as a follows: Brian 06/15/1975, Corrine 02-5-1975, Brady 01-01/2005 and Hank 6/1/2008. The following are Brian income and expenses information from his business and Corrine W-2 from Seminole county.

Lees dentist office income and expenses for the current year:

Gross Income: $265,000

Cost of Good Sold: 88,000

(Beginning Inventory 45,000, purchases 63,000, ending inventory 20,000)

Advertising: 5,000

Wages: 32,000

Office Rent: 9,600

Other: 2100

The Lees also made $40,000 in federal estimated tax payment during the year.

The Form W-2 Corrine received from Seminole County contained this information.

Wages (box 1)=$76,925.04

Federal W/H (box 2),085.90

Social Security wages (box 3),925.04

Social Security W/H (box 4)= 4,769.35

Medicare Wages (box 5) = 76,925.04

Medicare W/H (box 6),115.41

In addition , the Lees had the following income and expenses during the year:

Income

Interest from CDs at Pacific Coast Bank: 5000

Expenses

Mortgage interest paid to PC Bank for their home: 29,500

Property taxes paid on their residence: 7,000

Adoption expenses (fees, court cost, and attorneys fee):8,850

Child Care costs al LB parks and Recreation after school program for Hank: 3,500

Brian and Corrine have qualifying health care coverage at all time during the tax year. Prepare Lees federal tax return. Use form 1040, schedule A, schedule B, schedule c and any additional appropriate schedules or forms they may need for credits. (Please use 2022 forms). Do not complete form 4565 (with schedule C). (Assume no AMT although it may apply; form 6251 or AMT calculation is not required). For any missing information, make reasonable assumptions.