Complete FORM $1040$

Roy Scherer and Doris Kappelhoff are married to each other and will file a joint $2023$ Federal

income tax return. They are both US citizens and live at $1111$ Sentimental Lane, Hollywood,

California $90120.$ Roy is age $67$ and retired. His social security number is $333-44-5555.$ Doris

is age $58$ and a music teacher. Her social security number is $444-55-6666.$

They have three children that they support and who live with them as follows:

Frank is in his second year as a full$-$time student at State University which is a qualified

educational institution. Dean was not in school at all during $2023.$ Jerry was in high school for

all of $2023.$

Roy and Doris have the following items of income, deduction and tax paid:

Roy and Doris own a horse ranch known as Eggroll Ranch where they offer a boarding service in

addition to taking care of their own horses. Making money in the ranch operation is not a priority

since their goal is only to recover some of their costs by collecting boarding fees for other others

they manage. They use their own horses personally. In the eight years they have run the ranch

they have never made a profit. During $2023$ Eggroll Ranch had gross revenue of $$12,000$ in

boarding fees from horse owners unrelated to them. Eggroll Ranch $2023$ expenses are as

follows:

Assume that none of the above expense items are included in cost to arrive at gross profit. Roy

and Doris have allocated $$25,000$ of the expenses above to the care of their personal horses and

related usage of the ranch personally.

Required: Work on your own to prepare Roy and Doris's $2023$ joint Federal income tax return

to produce the lowest tax. Take into account the following:

You may not use commercial tax preparation software.

Ignore any available education credits.

The Treasury bonds are not used for education purposes.

The tax forms you need are loaded in Canvas $($in other course documents$).$ You

are not required to but may find additional information $($such as instructions$)$ at

IRS.gov including the ability to download and fill in the necessary forms.

The forms you will need are as follows: $1040$ and Schedule $1($or Schedule C

depending on your analysis$),$ Schedules B and D$,$ Form $8812$ and Form $8949.$

For Form $8949$ you only need fill out column $($h$).$ You can make up any of other

information at your discretion to fill in the other Form $8949$ columns. All of the

security sales are covered $($basis reported to IRS$).$

Neither Roy nor Doris have foreign assets.

Neither Roy nor Doris have any transactions in virtual currencies or digital assets

of any kind.