Comprehensive Problem $8-1$

Trish Himple owns a retail family clothing store. Her store is located at $4321$ Heather Drive, Henderson, NV $89002.$ Her employer identification number is $95-1234321$ and her Social Security number is $123-45-6789.$ Trish keeps her books on the cash basis. The income and expenses for the year are:

Gross sales $$345,000$

Returns and allowances $14,000$

Expenses:

Beginning inventory $($at cost$)$ $ $87,000$

Add: purchases $100,000$

Cost of goods available for sale $$187,000$

Less: ending inventory $($at cost$)72,000$

Cost of goods sold $$115,000$

Rent $24,000$

Insurance $3,000$

Legal and accounting fees $5,000$

Payroll $60,000$

Payroll taxes $5,000$

Utilities $2,000$

Office supplies $800$

Advertising $6,000$

The truck is not considered a passenger automobile for purposes of the luxury automobile limitations$.$

Trish also has a qualified home office of $250$ sq$.$ ft$.$ Her home is $2,000$ sq$.$ ft$.$ Her $2018$ purchase price and basis in the home, not including land, is $$100,000($the home$$s market value is $$150,000).$ She incurred the following costs in $2023$ related to the entire home:

Utilities $$3,000$

Cleaning $1,000$

Insurance $1,100$

Property taxes $2,000$How do I complete line $13($depreciation$)?$