Check Figures:

Adjusted gross income: 81,524

Itemized Deductions: 14,137

Taxable income: 63,337

88. Ashley Panda lives at 1310 Meadow Lane, Wayne, OH 43466, and her Social Security Tax Return Problem number is 123-45-6789. Ashley is single and has a 20-year-old son, B His Social Security number is 111-11-1112. Karl lives with Ashley, and she fully supports him. Bill spent 2016 traveling in Europe and was not a college student. He had gross income of $4,655 in 2016. Bill paid $4,000 of lodging expenses that Ashley reim- bursed after they were fully documented. Ashley paid the $4,000 to Bill using a check from her sole proprietorship. That amount is not included in the items listed belovw H&R 0 BLOCK TAX SOFTWARE Ashley owns the Enterprises LLC sole proprietorship, a data processing service 98- 7654321), which is located at 456 Hill Street, Wayne, OH 43466The business activity code is 514210. Her 2016 Form 1040, Schedule C for Panda Enterprises shows revenues of $315,000, office expenses of $66,759, employee salary of $63,000, employee payroll taxes of $4,820, meals and entertainment expenses (before the 50% reduction) of $22,000, and rent expense of $34,000. The rent expense includes payments related to renting an office ($30,000) and payments related to renting various equipment ($4,000) There is no depreciation because all depreciable equipment owned has been fully depre- ciated in previous years. No fringe benefits are provided to the employee. Ashley person- ally purchases health insurance on herself and Bill. The premiums are $23,000 per year Ashley has an extensive stock portfolio and has prep ared the following analysis: Date Per-Share Per-Share Stock Selling Price Dividends Purchased Date Sold 10/18/15 10/11/16 10/11/09 10/11/16 os Beige Garland 3/10/16 NOTE: Ashley received a Form 1099-B from her stockbroker that included the adjusted basis and sales proceeds for each of her stock transactions. The per-share cost includes commissions, and the per-share selling price is net of commissions. Also, the dividends are the actual dividends received in 2016, and these are both ordinary dividends and qualified dividends