Christopher Crosphit (birthdate April 28, 1979) owns and operates a health club called "Catawba Fitness". The business is located at 4321 New Cut Road, Spartanburg, SC 29303. The principal business code is 812190 and the EIN is 12-3456789. Chris had the following income and expenses from the health club: Income: $216000

Expenses:

Business insurance : 3500

Office supplies : 3330

Payroll : 98900

Payroll taxes : 9112

Travel : 2450

Equipment & club maintenance : 10750

Cleaning service : 8775

Equipment rent : 22800

Utilities (electric, water, gas) : 13975

Telephone : 2780

Rent : 32800

Advertising : 5150

Special workout clothing and boxing gloves : 780

Subscription to Biceps monthly magazine : 120

Educational seminar on weight training : 770

Other expenses : 1830

The business uses the cash method of accounting and has no accounts receivable or inventory held for resale.

Chris has the following interest income for the year:

Upper piedmont saving bank money market account : 1300

Morgan bank bond portfolio interest : 12500

( You may assume that the bond portfolio interest is from corporate bonds.)

Chris also dabbles as a broker of antique and rare books. He acquires and scavenges for books and then sells them on the Internet. He generated $4,000 of sales in 2021 and the books he sold cost $3,500. He also incurred $7,600 in travel and other expenses related to this activity. Chris has never turned a profit in the book business, but he loves books and book selling and does not mind losing money doing it.

Chris has been a widower for 10 years with a dependent son, Arnold (Social Security number 276-23-3954), and Chris files his tax return as head of household. Arnold (birthdate July 1, 2003) is a high school student; he does not qualify for the child tax credit but does qualify for the $500 other dependent credit. They live next door to the health club at 4323 New Cut Road. Chris does all the administrative work for the health club out of an office in his home. The room is 171 square feet and the house has a total of 1,800 square feet. Chris pays $20,000 per year in rent and $4,000 in utilities.

Chris Social Security number is 565-12-6789. He made an estimated tax payment to the IRS of $500 on April 15, 2021. Chris received a $2,800 < EIP in 2021.

Required: Complete Form 1040 for Chris and the other schedules and forms provided. Assume the taxpayer had full-year health coverage and does not want to contribute to the presidential election campaign. .

Do not complete Form 4562 (depreciation). Make realistic assumptions about any missing data. If required, enter a "loss" as a negative number on the tax form. Do not enter deductions or other amounts as negative numbers. If an amount box does not require an entry or the answer is zero, enter "0". Round any percentages to two decimal places. Round any dollar amounts to the nearest dollar