Comprehensive Problem 3-2A Russell (birthdate February 2, 1970) and Linda (birthdate August 30, 1975) Long have brought you the following information regarding their income and expenses for the current year. Russell owns and operates a landscaping business called Lawns and Landscapes Unlimited (EIN: 32 -1456789). The business is operated out of their home, located at 1234 Cherry Lane, Nampa, ID 83687 . The principal business code is 561730 . Russell's bookkeeper provided the following income statement from the landscaping business: TOTAL REVENUES 135,70083,4336,70012,6008,3006607,780119,47316,227 128,57578,4456,43210,6518,4352006,790110,95317,622 COST OF SERVICES Salaries Payroll Taxes Equipment Rental Maintenance (Equipment) Special Clothing and Safety Contract Labor TOTAL COST OF SERVICES GROSS PROFIT (LOSS) OPERATING EXPENSES Advertising and Promotion Donations Insurance Meals and Subscriptio Business G Telephone Training \begin{tabular}{r} 6,790 \\ 110,953 \\ 17,622 \\ \hline 700 \\ 500 \\ 870 \\ 2,100 \\ 120 \\ 600 \\ 1,956 \end{tabular} Travel 750 nthor 17nn The bookkeeper provided the following additional information: - Donations expense is a $600 donation to the Campaign to Re-Elect Senator Ami Dahla. - Training includes $575 for an educational seminar on bug control. It also includes the cost for Russell to attend an online certificate program in landscaping in order to improve his skills and advertise his designation as a certified landscaper. The tuition, fees, and books cost $1,400. He also drove his personal car 60 miles round trip to Boise to take exams three times for a total 180 miles. - No business gift exceeded $22 in value. - The subscription is for a trade magazine titled Plants Unlimited. - Meals and entertainment is the cost of meals provided by restaurants. The business uses the cash method of accounting and has no accounts receivable or inventory held for resale. In addition to the above expenses, the Longs have set aside one room of their house as a home office. The room is 192 square feet and their house has a total of 1,600 square feet. They pay $13,200 per year rental on their house, and the utilities amount to $1,800 for the year. The Longs inherited a large number of acres of farm land from Linda's father in 2020 and sold it immediately for its market $1,000,000. They invested the proceeds in the Potato Dividend High Yield Fund and received $44,600 in ordinary dividends, all of which were qualified, in 2021 (1099-DIV not shown). The Longs have two dependent children, Bill (Social Security number 123-23-7654) and Martha (Social Security number 345-67-8654). Both Bill and Martha are full-time high school students, ages 18 and 19 , respectively, and each can be claimed for the $500 other dependent credit. Both children received a scholarship for all tuition and fees but nothing in excess. Russell's Social Security number is 66498 3946. They made an estimated tax payment to the IRS of $300 on December 31,2021 . The Longs received a $5,600 EIP in 2021. Required: Complete the Long's tax return including Form 1040 and the provided schedules and forms. Assume the taxpayers had full-year health coverage - No business gift exceeded $22 in value. - The subscription is for a trade magazine titled Plants Unlimited. - Meals and entertainment is the cost of meals provided by restaurants. The business uses the cash method of accounting and has no accounts receivable or inventory held for resale. has a total of 1,600 square feet. They pay $13,200 per year rental on their house, and the utilities amount to $1,800 for the year. The Longs inherited a large number of acres of farm land from Linda's father in 2020 and sold it immediately for its market value $1,000,000. They invested the proceeds in the Potato Dividend High Yield Fund and received $44,600 in ordinary dividends, all of which were qualified, in 2021 (1099-DIV not shown). The Longs have two dependent children, Bill (Social Security number 123-23-7654) and Martha (Social Security number 345-67-8654). Both Bill and Martha are full-time high school students, ages 18 and 19 , respectively, and each can be claimed for the $500 other dependent credit. Both children received a scholarship for all tuition and fees but nothing in excess. Russell's Social Security number is 66498 - 5678 and 3946. They made an estimated tax payment to the IRS of $300 on December 31,2021 . The Longs received a $5,600 EIP in 2021. Required: Complete the Long's tax return including Form 1040 and the provided schedules and forms. Assume the taxpayers had full-year health coverage and neither taxpayer wants to contribute to the presidential election campaign. - Do not complete Form 4562 (depreciation) or Form 8812 (additional child tax credit). You may ignore any related selfemployment taxes. 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 ". - Do not round any division. If required, round your final answers to the nearest dollar. Comprehensive Problem 3-2A Russell (birthdate February 2, 1970) and Linda (birthdate August 30, 1975) Long have brought you the following information regarding their income and expenses for the current year. Russell owns and operates a landscaping business called Lawns and Landscapes Unlimited (EIN: 32 -1456789). The business is operated out of their home, located at 1234 Cherry Lane, Nampa, ID 83687 . The principal business code is 561730 . Russell's bookkeeper provided the following income statement from the landscaping business: TOTAL REVENUES 135,70083,4336,70012,6008,3006607,780119,47316,227 128,57578,4456,43210,6518,4352006,790110,95317,622 COST OF SERVICES Salaries Payroll Taxes Equipment Rental Maintenance (Equipment) Special Clothing and Safety Contract Labor TOTAL COST OF SERVICES GROSS PROFIT (LOSS) OPERATING EXPENSES Advertising and Promotion Donations Insurance Meals and Subscriptio Business G Telephone Training \begin{tabular}{r} 6,790 \\ 110,953 \\ 17,622 \\ \hline 700 \\ 500 \\ 870 \\ 2,100 \\ 120 \\ 600 \\ 1,956 \end{tabular} Travel 750 nthor 17nn The bookkeeper provided the following additional information: - Donations expense is a $600 donation to the Campaign to Re-Elect Senator Ami Dahla. - Training includes $575 for an educational seminar on bug control. It also includes the cost for Russell to attend an online certificate program in landscaping in order to improve his skills and advertise his designation as a certified landscaper. The tuition, fees, and books cost $1,400. He also drove his personal car 60 miles round trip to Boise to take exams three times for a total 180 miles. - No business gift exceeded $22 in value. - The subscription is for a trade magazine titled Plants Unlimited. - Meals and entertainment is the cost of meals provided by restaurants. The business uses the cash method of accounting and has no accounts receivable or inventory held for resale. In addition to the above expenses, the Longs have set aside one room of their house as a home office. The room is 192 square feet and their house has a total of 1,600 square feet. They pay $13,200 per year rental on their house, and the utilities amount to $1,800 for the year. The Longs inherited a large number of acres of farm land from Linda's father in 2020 and sold it immediately for its market $1,000,000. They invested the proceeds in the Potato Dividend High Yield Fund and received $44,600 in ordinary dividends, all of which were qualified, in 2021 (1099-DIV not shown). The Longs have two dependent children, Bill (Social Security number 123-23-7654) and Martha (Social Security number 345-67-8654). Both Bill and Martha are full-time high school students, ages 18 and 19 , respectively, and each can be claimed for the $500 other dependent credit. Both children received a scholarship for all tuition and fees but nothing in excess. Russell's Social Security number is 66498 3946. They made an estimated tax payment to the IRS of $300 on December 31,2021 . The Longs received a $5,600 EIP in 2021. Required: Complete the Long's tax return including Form 1040 and the provided schedules and forms. Assume the taxpayers had full-year health coverage - No business gift exceeded $22 in value. - The subscription is for a trade magazine titled Plants Unlimited. - Meals and entertainment is the cost of meals provided by restaurants. The business uses the cash method of accounting and has no accounts receivable or inventory held for resale. has a total of 1,600 square feet. They pay $13,200 per year rental on their house, and the utilities amount to $1,800 for the year. The Longs inherited a large number of acres of farm land from Linda's father in 2020 and sold it immediately for its market value $1,000,000. They invested the proceeds in the Potato Dividend High Yield Fund and received $44,600 in ordinary dividends, all of which were qualified, in 2021 (1099-DIV not shown). The Longs have two dependent children, Bill (Social Security number 123-23-7654) and Martha (Social Security number 345-67-8654). Both Bill and Martha are full-time high school students, ages 18 and 19 , respectively, and each can be claimed for the $500 other dependent credit. Both children received a scholarship for all tuition and fees but nothing in excess. Russell's Social Security number is 66498 - 5678 and 3946. They made an estimated tax payment to the IRS of $300 on December 31,2021 . The Longs received a $5,600 EIP in 2021. Required: Complete the Long's tax return including Form 1040 and the provided schedules and forms. Assume the taxpayers had full-year health coverage and neither taxpayer wants to contribute to the presidential election campaign. - Do not complete Form 4562 (depreciation) or Form 8812 (additional child tax credit). You may ignore any related selfemployment taxes. 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 ". - Do not round any division. If required, round your final answers to the nearest dollar