Question
Christian Everland (SS# 412-34-5670) is single and resides at 3554 Arrival Road, Apt. 6E, Buckhead, GA 30625. Last year Christian started his own landscaping business.
Christian Everland (SS# 412-34-5670) is single and resides at 3554 Arrival Road, Apt. 6E, Buckhead, GA 30625. Last year Christian started his own landscaping business. He now has two employees and had the following business results in 2018:
Revenue | $ | 63,500 | |||
Expenses | |||||
Wages | $ | 12,500 | |||
Payroll taxes | 956 | ||||
Fuel | 3,500 | ||||
Repairs | 2,345 | ||||
Assets
Truck, used 100% for business. Original cost of $22,000. Purchased on 03/01/18.
Mower #1. Original cost of $4,500. Purchased new on 01/05/18.
Mower #2. Leased for $200 per month for all of 2018.
Other business equipment. Original cost of $4,000. Purchased new on 01/05/18. Section 179 depreciation is elected for all eligible assets. Christian has no other income, does not itemize, and has no dependents. He paid four quarterly federal tax estimates of $700 each. Prepare Christians 2018 Form 1040 and supplemental schedules. Schedule C, Form 4562, and Schedule SE are required. He wants to contribute to the presidential election campaign and does not want anyone to be a third-party designee. Christian had qualifying health care coverage at all times during the tax year. For any missing information, make reasonable assumptions. (List the names of the taxpayers and any income they receive in the order in which they appear in the problem. Input all the values as positive numbers unless otherwise stated in the forms. Instructions can be found on certain cells within the forms. Round your intermediate computations and your final answers to the nearest whole dollar amount.)
Use the appropriate Tax Tables.
1040 PG 1 1040 PG 2 Schedule 1 || Schedule 4 | Schedule 5 Schedule C PG1 Schedule C PG2 Schedule SE Form 4562 1040 PG 1 1040 PG 2 Schedule 1 || Schedule 4 | Schedule 5 Schedule C PG1 Schedule C PG2 Schedule SE Form 4562Step by Step Solution
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