Comprehensive Problem Chapter 16 2021 Tax Year ACC 401 Use the following information to compute Ashley Panda's 2021 federal income tax payable amount or tax refund amount. Complete your calculations using the designated excel worksheet, and follow the instructions on the comprehensive problem information sheet. You may find it useful to reference the following forms while completing this comprehensive problem: Form 1040, Schedule 1, Schedule A and Schedule C. Facts: Ashley Panda is single and has a 20 year old son named Bill. Bill lives with Ashley and she fully supports him. Bill spent 2021 traveling in Asia and was not a student. In 2021 Bill had gross income of $5,225. Ashley owns and operates Panda Enterprises, LLC, a data processing service company. Panda Enterprises' cash basis 2021 P&L Statement, generated in QuickBooks accounting software, shows the following: revenues of $335,000, office expense of $66,760, employee salary of $63,000, employee payroll taxes of $4,820, health insurance premiums of $19,900, total legitimate business non-restaurant meal expenses of $8,000, and rent expense of $34,200. There is no depreciation for either book or tax in 2021 because all depreciable equipment owned has been fully depreciated in previous years. The portion of the health insurance premiums paid to cover the employee was $6,350. The portion of the premium paid to cover Ashley was $8,200, and the remainder of the cost was for Bill's coverage. Ashley has an extensive stock portfolio and has prepared the following analysis. Stock # of Shares Date Purchased Date Sold Per Share Cost Per Share Selling Price Total Dividends FF 10 10/22/20 10/11/21 $ 82 $ 60 $ 150 UU 35 8/5/09 10/11/21 52 179 185 NN 15 3/16/21 10/11/21 69 42 170 Note: Ashley received a Form 1099-B from her stockbroker that included the adjusted basis and sales proceeds for each of her stock transactions. The per-share cost includes commissions, and the per-share selling price is net of commissions. Also, the dividends are the actual cash dividends received in 2021 and are both ordinary dividends (rather than liquidating dividends) and qualified dividends. (rather than liquidating dividends) and qualified dividends. Ashley received $900 of interest income from state of Ohio bonds and $410 of interest income on her First Savings Bank account. She paid $12,000 of alimony to her former husband whom she divorced in 2016, and $30,000 of estimated federal income tax payments for 2021. Ashley itemizes her deductions and had the following items, which may be relevant to her return: Item Amount Notes Unreimbursed medical expenses $3,259 all for Ashley's visits to her doctors State income taxes paid 2,680 Real property taxes on personal residence 4,720 Interest paid on home mortgage 5,829 $200K acquisition loan secured by residence Charitable contributions 2,940 checks paid to Ashley's church State sales taxes 619 amount from IRS sales tax table Gross Income: Schedule C: Total Gross Income 160,605 Deductions for AGI: > $142,800 SS threshold Ashley Sched C profit x 92.35% (7.65% reduction) |x 2.9% medicare tax rate 12.4% SS tax rate x 142,800 Total SE tax x 50% of SE tax Total Deductions for AGI 36,491 21,881.63 AGI litemized Deductions: Total Itemized Deductions 16,169 MTI QBI TI before QBI Ded Less: Less: Total MTI Sched C profit Less: Less: Total QBI Qualified Business Income Deduction: Lesser of MTI or QBI x 20% QBI Deduction 20% Taxable income Less: Less: Ti taxed at ordinary rates Single tax on $ 22% x $ Tax on Ti taxed at ordinary rates Tl is > $40,400 & $142,800 SS threshold Ashley Sched C profit x 92.35% (7.65% reduction) |x 2.9% medicare tax rate 12.4% SS tax rate x 142,800 Total SE tax x 50% of SE tax Total Deductions for AGI 36,491 21,881.63 AGI litemized Deductions: Total Itemized Deductions 16,169 MTI QBI TI before QBI Ded Less: Less: Total MTI Sched C profit Less: Less: Total QBI Qualified Business Income Deduction: Lesser of MTI or QBI x 20% QBI Deduction 20% Taxable income Less: Less: Ti taxed at ordinary rates Single tax on $ 22% x $ Tax on Ti taxed at ordinary rates Tl is > $40,400 &