COMPREHENSIVE PROBLEM 3 With Emphasis on Schedule C Christian Everland (SS 412 34 5670) is single and resides at 3554 Arrival Road, Apt 6E, Buckhead, GA 30625 Page B 4 Last year Christian started his own landscaping business He now has two employees and had the following business results in 2016 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 16 Mower 1 Original cost of $4,500 Purchased new on 01 05 16 Mower 2 Leased for $200 per month for all of 2016 Other business equipment Original cost of $4,000 Purchased new on 01 05 16 Christian has no other income, does not itemize, and has no dependents He paid four quarterly federal tax estimates of $1,000 each Required Prepare Christians 2016 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

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COMPREHENSIVE PROBLEM 3 With Emphasis on Schedule C Christian Everland (SS# 412-34-5670) is single and resides at 3554 Arrival Road, Apt. 6E, Buckhead, GA 30625.

COMPREHENSIVE PROBLEM 3

With Emphasis on Schedule C

Christian Everland (SS# 412-34-5670) is single and resides at 3554 Arrival Road, Apt. 6E, Buckhead, GA 30625.

Page B-4

Last year Christian started his own landscaping business. He now has two employees and had the following business results in 2016:

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 03/01/16.
Mower #1. Original cost of $4,500. Purchased new on 01/05/16.
Mower #2. Leased for $200 per month for all of 2016.
Other business equipment. Original cost of $4,000. Purchased new on 01/05/16.

Christian has no other income, does not itemize, and has no dependents. He paid four quarterly federal tax estimates of $1,000 each.

Required

Prepare Christians 2016 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.