Comprehensive Problem One Noah and Joan Arc's Tax Return Noah and Joan Arc live with their family in Dayton, OH, Noah's Social Security number is 434 11 3311 Noah was born on February 22, 1984 and Joan was born on July 1, 1989, Both enjoy good health and eyesight Noah owns and operates a pet store and Joan is a firefighter for the city of Dayton 1 The Arcs have two children, a son named Billie Bob (Social Security number 598 01 2345), bom on March 21, 2012 and a daughter named Mary Sue (Social Security num ber 554 33 2411), born on December 3, 2015 2 Joan and Noah brought a folder of tax documents located on Pages D 3 to D 5 3 Noah's pet store is located at 1415 S Patterson Blvd, Dayton, OH 45409 The name of the store is The Arc, and its taxpayer identification number is 95 9876556 Since you handle Noah's bookkeeping you have printed the income statement from your Quickbooks software, shown on Page D 5 4 Detail of The Arc's meals and entertainment $ 400 Meals associated with business travel Overtime meals for employees 878 Sports tickets for entertaining large customers $1,338 350 220 5 Travel costs are business related and do not include meals 6 Noah and Joan paid the following amounts during the year (all by check) Political contributions $ 250 Church donations (for which a written acknowledgment was received) 5,025 Real estate taxes on their home 2 375 Medical co pays for doctor visits 700 Mortgage interest for purchase of home See Form 1098 (Page D 4) Tax return preparation fees Credit card interest Automobile insurance premiums 600 Uniforms for Joan 125 Contribution to Noah's individual retirement account (made on April 1, 2020) 6,000 7 Noah has a long term capital loss carryover from last year of $2,400 8 Noah and Joan own a condo and use it as a rental property The condo is located at 16 Oakwood Ave, Unit A, Dayton, OH 45409 Noah provides the management services for the rental including selection of tenants, maintenance, repairs, rent collection, and other services as needed On average, Noah spends about 2 hours per week on the rental activity The revenue and expenses for the year are as follows Rental income $13,800 Insurance Interest expense 6,870 Property taxes 1,016 Miscellaneous expenses The home was acquired for $85,000 in 2003 No improvements have been made to the property 9 The Ares paid Ohio general sales tax of $976 during the year 575 700 Required You are to prepare the Arc's federal income tax return in good form, signing the return as the preparer Do not complete an Ohio state income tax return Make realistic assumptions about any missing data (addresses, etc ) that you may need The following forms and schedules are required Form 1040 Schedule SE Schedule 1 Form 2441 Schedule 2 Form 4562 Schedule 3 Form 8812 Schedule A Form 8949 Schedule B Form 8995 Schedule C Child Tax Credit Worksheet Schedule D Qualified Dividends and Capital Gain Tax Worksheet Schedule E Note The forms included in Appendix D are provided for the student to work on only one of the two additional comprehensive problems If desired, additional tax forms may be obtained from the IRS website at www irs gov 456 87 5432 C M 33 4382966 1546 00 FASTU e file wwwis gaviotto 1 CO2 30,240 00 5 120 00 3 Soca con 30 240 00 1 874 88 30,240 00 438 48 7 Soury ed tips City of Dayton Fire and Rescue 123 Warren Street Dayton, OH 45402 11 g eplan DD 12,200 00 Joan Arc 1265 W Riverview Ave Dayton, OH 45402 0 OHL 1126 87021 1 30 240 00 1,850 00 W 2 Wage and Tax To Be Fed whe 2019 's FEDERAL Textum Charlotte Squab Financial Services New York, NY 1000 Joan and Noah Arc 1265 W Riverview Avenue Dayton, OH 45402 SSN 4 87 5432 Dote December 31, 2019 Dividends Substitute 1099 Statement Box 10 Blo Box lb Quid Dividendi Cop Con Dividends Povor Dividends Dub 0 00 312 00 FM 0 00 0 00 Tess dl L1800 188 00 0 00 CS Growth 265 00 19 00 0 00 Stock Transactions reported Description Date Aca Proceeds 100 shs Blue Corp co r 2002 DO 5 2010 4537 00 2 576 00 01 13 2017 0610 2010 5 345 00 50 sh Yellow Corp 25 shs Red Co 1002 2010 10 07 2019 12 212 00 1 0509 VOID CORRECTED 2019 Chase Mortgage 100 Park Avenue New York, NY 10017 Mortgage Interest Statement From p 11 100 00 Copy c Por edhe $ 274 200 00 03 13 2010 13 4296127 434 11 3311 Noah and Joan Arc 1265 W Riverview Avenue Dayton, OH 45402 11 O ROUNDUP DAY CARE CENTER 245 WILKINSON STREET DAYTON, OH 45402 January 12, 2020 Joan and Noah Arc 1265 W Riverview Avenue Dayton, OH 45402 Dear Joan and Noah, Thank you for a great 2019 at Roundup We appreciate your patronage during the year and hope to continue to provide excellent service for Mary Sue in 2020 We have provided the tax information for calendar year 2019 below Please let us know if you need any additional information Sincerely, Charles F Burgundian Charles F Burgundian Executive Director, Roundup Day Care EIN 54 0983456 Date of service January 1, 2019 December 31, 2019 Amount Paid $3,000 00 Child Mary Sue Arc $143 245 00 $0 00 $143,245 00 The Arc 95 9876556 Income Statement For the Year Ended December 31, 2019 Revenue Gross Sales Less Sales Returns and Allowances Net Sales Cost of Goods Sold Beginning Inventory $10,204 00 Add Purchases $62 111 00 572315 00 Less Ending Inventory $9 987 00 Cost of Goods Sold Gross Profit (Loss) Expenses Dues and Subscriptions $0 00 Estimated Federal Tax Payments $8,000 00 Estimated State Tax Payments $4,000 00 Insurance $780 00 Meals and Entertainment $1 338 00 Miscellaneous $0 00 Payroll Taxes $3 840 00 Professional Fees $1,700 00 $8,400 00 Travel $1,231 00 Utilities $1 254 00 Vehicle Expenses $0 00 Wages $25 113 00 Total Expenses $62 328 00 $40 917 00 $55,656 00 Net Operating Income $25 261 00 Comprehensive Problem One Noah and Joan Arc's Tax Return Noah and Joan Arc live with their family in Dayton, OH, Noah's Social Security number is 434 11 3311 Noah was born on February 22, 1984 and Joan was born on July 1, 1989, Both enjoy good health and eyesight Noah owns and operates a pet store and Joan is a firefighter for the city of Dayton 1 The Arcs have two children, a son named Billie Bob (Social Security number 598 01 2345), bom on March 21, 2012 and a daughter named Mary Sue (Social Security num ber 554 33 2411), born on December 3, 2015 2 Joan and Noah brought a folder of tax documents located on Pages D 3 to D 5 3 Noah's pet store is located at 1415 S Patterson Blvd, Dayton, OH 45409 The name of the store is The Arc, and its taxpayer identification number is 95 9876556 Since you handle Noah's bookkeeping you have printed the income statement from your Quickbooks software, shown on Page D 5 4 Detail of The Arc's meals and entertainment $ 400 Meals associated with business travel Overtime meals for employees 878 Sports tickets for entertaining large customers $1,338 350 220 5 Travel costs are business related and do not include meals 6 Noah and Joan paid the following amounts during the year (all by check) Political contributions $ 250 Church donations (for which a written acknowledgment was received) 5,025 Real estate taxes on their home 2 375 Medical co pays for doctor visits 700 Mortgage interest for purchase of home See Form 1098 (Page D 4) Tax return preparation fees Credit card interest Automobile insurance premiums 600 Uniforms for Joan 125 Contribution to Noah's individual retirement account (made on April 1, 2020) 6,000 7 Noah has a long term capital loss carryover from last year of $2,400 8 Noah and Joan own a condo and use it as a rental property The condo is located at 16 Oakwood Ave, Unit A, Dayton, OH 45409 Noah provides the management services for the rental including selection of tenants, maintenance, repairs, rent collection, and other services as needed On average, Noah spends about 2 hours per week on the rental activity The revenue and expenses for the year are as follows Rental income $13,800 Insurance Interest expense 6,870 Property taxes 1,016 Miscellaneous expenses The home was acquired for $85,000 in 2003 No improvements have been made to the property 9 The Ares paid Ohio general sales tax of $976 during the year 575 700 Required You are to prepare the Arc's federal income tax return in good form, signing the return as the preparer Do not complete an Ohio state income tax return Make realistic assumptions about any missing data (addresses, etc ) that you may need The following forms and schedules are required Form 1040 Schedule SE Schedule 1 Form 2441 Schedule 2 Form 4562 Schedule 3 Form 8812 Schedule A Form 8949 Schedule B Form 8995 Schedule C Child Tax Credit Worksheet Schedule D Qualified Dividends and Capital Gain Tax Worksheet Schedule E Note The forms included in Appendix D are provided for the student to work on only one of the two additional comprehensive problems If desired, additional tax forms may be obtained from the IRS website at www irs gov 456 87 5432 C M 33 4382966 1546 00 FASTU e file wwwis gaviotto 1 CO2 30,240 00 5 120 00 3 Soca con 30 240 00 1 874 88 30,240 00 438 48 7 Soury ed tips City of Dayton Fire and Rescue 123 Warren Street Dayton, OH 45402 11 g eplan DD 12,200 00 Joan Arc 1265 W Riverview Ave Dayton, OH 45402 0 OHL 1126 87021 1 30 240 00 1,850 00 W 2 Wage and Tax To Be Fed whe 2019 's FEDERAL Textum Charlotte Squab Financial Services New York, NY 1000 Joan and Noah Arc 1265 W Riverview Avenue Dayton, OH 45402 SSN 4 87 5432 Dote December 31, 2019 Dividends Substitute 1099 Statement Box 10 Blo Box lb Quid Dividendi Cop Con Dividends Povor Dividends Dub 0 00 312 00 FM 0 00 0 00 Tess dl L1800 188 00 0 00 CS Growth 265 00 19 00 0 00 Stock Transactions reported Description Date Aca Proceeds 100 shs Blue Corp co r 2002 DO 5 2010 4537 00 2 576 00 01 13 2017 0610 2010 5 345 00 50 sh Yellow Corp 25 shs Red Co 1002 2010 10 07 2019 12 212 00 1 0509 VOID CORRECTED 2019 Chase Mortgage 100 Park Avenue New York, NY 10017 Mortgage Interest Statement From p 11 100 00 Copy c Por edhe $ 274 200 00 03 13 2010 13 4296127 434 11 3311 Noah and Joan Arc 1265 W Riverview Avenue Dayton, OH 45402 11 O ROUNDUP DAY CARE CENTER 245 WILKINSON STREET DAYTON, OH 45402 January 12, 2020 Joan and Noah Arc 1265 W Riverview Avenue Dayton, OH 45402 Dear Joan and Noah, Thank you for a great 2019 at Roundup We appreciate your patronage during the year and hope to continue to provide excellent service for Mary Sue in 2020 We have provided the tax information for calendar year 2019 below Please let us know if you need any additional information Sincerely, Charles F Burgundian Charles F Burgundian Executive Director, Roundup Day Care EIN 54 0983456 Date of service January 1, 2019 December 31, 2019 Amount Paid $3,000 00 Child Mary Sue Arc $143 245 00 $0 00 $143,245 00 The Arc 95 9876556 Income Statement For the Year Ended December 31, 2019 Revenue Gross Sales Less Sales Returns and Allowances Net Sales Cost of Goods Sold Beginning Inventory $10,204 00 Add Purchases $62 111 00 572315 00 Less Ending Inventory $9 987 00 Cost of Goods Sold Gross Profit (Loss) Expenses Dues and Subscriptions $0 00 Estimated Federal Tax Payments $8,000 00 Estimated State Tax Payments $4,000 00 Insurance $780 00 Meals and Entertainment $1 338 00 Miscellaneous $0 00 Payroll Taxes $3 840 00 Professional Fees $1,700 00 $8,400 00 Travel $1,231 00 Utilities $1 254 00 Vehicle Expenses $0 00 Wages $25 113 00 Total Expenses $62 328 00 $40 917 00 $55,656 00 Net Operating Income $25 261 00

Question

Comprehensive Problem One Noah and Joan Arc's Tax Return Noah and Joan Arc live with their family in Dayton, OH, Noah's Social Security number is 434 11 3311  Noah was born on February 22, 1984 and Joan was born on July 1, 1989, Both enjoy good health and eyesight  Noah owns and operates a pet store and Joan is a firefighter for the city of Dayton  1  The Arcs have two children, a son named Billie Bob (Social Security number 598 01  2345), bom on March 21, 2012 and a daughter named Mary Sue (Social Security num ber 554 33 2411), born on December 3, 2015  2  Joan and Noah brought a folder of tax documents located on Pages D 3 to D 5  3  Noah's pet store is located at 1415 S  Patterson Blvd, Dayton, OH 45409  The name of the store is  The Arc,  and its taxpayer identification number is 95 9876556  Since you handle Noah's bookkeeping you have printed the income statement from your Quickbooks software, shown on Page D 5  4  Detail of The Arc's meals and entertainment  $ 400 Meals associated with business travel Overtime meals for employees 878 Sports tickets for entertaining large customers $1,338 350 220 5  Travel costs are business related and do not include meals  6  Noah and Joan paid the following amounts during the year (all by check)  Political contributions $ 250 Church donations (for which a written acknowledgment was received) 5,025 Real estate taxes on their home 2 375 Medical co pays for doctor visits 700 Mortgage interest for purchase of home See Form 1098 (Page D 4) Tax return preparation fees Credit card interest Automobile insurance premiums 600 Uniforms for Joan 125 Contribution to Noah's individual retirement account (made on April 1, 2020) 6,000 7  Noah has a long term capital loss carryover from last year of $2,400 8  Noah and Joan own a condo and use it as a rental property  The condo is located at 16 Oakwood Ave, Unit A, Dayton, OH 45409  Noah provides the management services for the rental including selection of tenants, maintenance, repairs, rent collection, and other services as needed  On average, Noah spends about 2 hours per week on the rental activity  The revenue and expenses for the year are as follows  Rental income $13,800 Insurance Interest expense 6,870 Property taxes 1,016 Miscellaneous expenses The home was acquired for $85,000 in 2003  No improvements have been made to the property 9  The Ares paid Ohio general sales tax of $976 during the year  575 700 Required  You are to prepare the Arc's federal income tax return in good form, signing the return as the preparer  Do not complete an Ohio state income tax return  Make realistic assumptions about any missing data (addresses, etc ) that you may need  The following forms and schedules are required  Form 1040 Schedule SE Schedule 1 Form 2441 Schedule 2 Form 4562 Schedule 3 Form 8812 Schedule A Form 8949 Schedule B Form 8995 Schedule C Child Tax Credit Worksheet Schedule D Qualified Dividends and Capital Gain Tax Worksheet Schedule E Note  The forms included in Appendix D are provided for the student to work on only one of the two additional comprehensive problems  If desired, additional tax forms may be obtained from the IRS website at www irs gov  456 87 5432 C M 33 4382966 1546 00 FASTU  e file wwwis gaviotto 1 CO2 30,240 00 5 120 00 3 Soca con 30 240 00 1 874 88 30,240 00 438 48 7 Soury ed tips City of Dayton Fire and Rescue 123 Warren Street Dayton, OH 45402 11 g eplan DD 12,200 00 Joan Arc 1265 W  Riverview Ave  Dayton, OH 45402 0 OHL 1126 87021 1 30 240 00 1,850 00 W 2 Wage and Tax  To Be Fed whe 2019 's FEDERAL Textum Charlotte Squab Financial Services New York, NY 1000 Joan and Noah Arc 1265 W  Riverview Avenue Dayton, OH 45402 SSN  4 87 5432 Dote December 31, 2019 Dividends Substitute 1099 Statement Box 10 Blo Box lb Quid Dividendi Cop Con Dividends Povor Dividends Dub 0 00 312 00 FM 0 00 0 00 Tess dl  L1800 188 00 0 00 CS Growth 265 00 19 00 0 00 Stock Transactions reported Description Date Aca Proceeds 100 shs  Blue Corp  co r 2002 DO 5 2010 4537 00 2 576 00 01 13 2017 0610 2010 5 345 00 50 sh  Yellow Corp  25 shs  Red Co  1002 2010 10 07 2019 12 212 00 1 0509 VOID CORRECTED 2019 Chase Mortgage 100 Park Avenue New York, NY 10017 Mortgage Interest Statement From p 11 100 00 Copy c Por edhe $ 274 200 00 03 13 2010 13 4296127 434 11 3311 Noah and Joan Arc 1265 W  Riverview Avenue Dayton, OH 45402 11 O ROUNDUP DAY CARE CENTER 245   WILKINSON STREET DAYTON, OH 45402 January 12, 2020 Joan and Noah Arc 1265 W  Riverview Avenue Dayton, OH 45402 Dear Joan and Noah, Thank you for a great 2019 at Roundup  We appreciate your patronage during the year and hope to continue to provide excellent service for Mary Sue in 2020  We have provided the tax information for calendar year 2019 below  Please let us know if you need any additional information  Sincerely, Charles F  Burgundian Charles F  Burgundian Executive Director, Roundup Day Care EIN 54 0983456 Date of service January 1, 2019   December 31, 2019 Amount Paid $3,000 00 Child Mary Sue Arc $143 245 00 $0 00 $143,245 00 The Arc 95 9876556 Income Statement For the Year Ended December 31, 2019 Revenue  Gross Sales Less  Sales Returns and Allowances Net Sales Cost of Goods Sold  Beginning Inventory $10,204 00 Add  Purchases $62 111 00 572315 00 Less  Ending Inventory $9 987 00 Cost of Goods Sold Gross Profit (Loss) Expenses  Dues and Subscriptions $0 00 Estimated Federal Tax Payments $8,000 00 Estimated State Tax Payments $4,000 00 Insurance $780 00 Meals and Entertainment $1 338 00 Miscellaneous $0 00 Payroll Taxes $3 840 00 Professional Fees $1,700 00 $8,400 00 Travel $1,231 00 Utilities $1 254 00 Vehicle Expenses $0 00 Wages $25 113 00 Total Expenses $62 328 00 $40 917 00 $55,656 00 Net Operating Income $25 261 00 Comprehensive Problem One Noah and Joan Arc's Tax Return Noah and Joan Arc live with their family in Dayton, OH, Noah's Social Security number is 434 11 3311  Noah was born on February 22, 1984 and Joan was born on July 1, 1989, Both enjoy good health and eyesight  Noah owns and operates a pet store and Joan is a firefighter for the city of Dayton  1  The Arcs have two children, a son named Billie Bob (Social Security number 598 01  2345), bom on March 21, 2012 and a daughter named Mary Sue (Social Security num ber 554 33 2411), born on December 3, 2015  2  Joan and Noah brought a folder of tax documents located on Pages D 3 to D 5  3  Noah's pet store is located at 1415 S  Patterson Blvd, Dayton, OH 45409  The name of the store is  The Arc,  and its taxpayer identification number is 95 9876556  Since you handle Noah's bookkeeping you have printed the income statement from your Quickbooks software, shown on Page D 5  4  Detail of The Arc's meals and entertainment  $ 400 Meals associated with business travel Overtime meals for employees 878 Sports tickets for entertaining large customers $1,338 350 220 5  Travel costs are business related and do not include meals  6  Noah and Joan paid the following amounts during the year (all by check)  Political contributions $ 250 Church donations (for which a written acknowledgment was received) 5,025 Real estate taxes on their home 2 375 Medical co pays for doctor visits 700 Mortgage interest for purchase of home See Form 1098 (Page D 4) Tax return preparation fees Credit card interest Automobile insurance premiums 600 Uniforms for Joan 125 Contribution to Noah's individual retirement account (made on April 1, 2020) 6,000 7  Noah has a long term capital loss carryover from last year of $2,400 8  Noah and Joan own a condo and use it as a rental property  The condo is located at 16 Oakwood Ave, Unit A, Dayton, OH 45409  Noah provides the management services for the rental including selection of tenants, maintenance, repairs, rent collection, and other services as needed  On average, Noah spends about 2 hours per week on the rental activity  The revenue and expenses for the year are as follows  Rental income $13,800 Insurance Interest expense 6,870 Property taxes 1,016 Miscellaneous expenses The home was acquired for $85,000 in 2003  No improvements have been made to the property 9  The Ares paid Ohio general sales tax of $976 during the year  575 700 Required  You are to prepare the Arc's federal income tax return in good form, signing the return as the preparer  Do not complete an Ohio state income tax return  Make realistic assumptions about any missing data (addresses, etc ) that you may need  The following forms and schedules are required  Form 1040 Schedule SE Schedule 1 Form 2441 Schedule 2 Form 4562 Schedule 3 Form 8812 Schedule A Form 8949 Schedule B Form 8995 Schedule C Child Tax Credit Worksheet Schedule D Qualified Dividends and Capital Gain Tax Worksheet Schedule E Note  The forms included in Appendix D are provided for the student to work on only one of the two additional comprehensive problems  If desired, additional tax forms may be obtained from the IRS website at www irs gov  456 87 5432 C M 33 4382966 1546 00 FASTU  e file wwwis gaviotto 1 CO2 30,240 00 5 120 00 3 Soca con 30 240 00 1 874 88 30,240 00 438 48 7 Soury ed tips City of Dayton Fire and Rescue 123 Warren Street Dayton, OH 45402 11 g eplan DD 12,200 00 Joan Arc 1265 W  Riverview Ave  Dayton, OH 45402 0 OHL 1126 87021 1 30 240 00 1,850 00 W 2 Wage and Tax  To Be Fed whe 2019 's FEDERAL Textum Charlotte Squab Financial Services New York, NY 1000 Joan and Noah Arc 1265 W  Riverview Avenue Dayton, OH 45402 SSN  4 87 5432 Dote December 31, 2019 Dividends Substitute 1099 Statement Box 10 Blo Box lb Quid Dividendi Cop Con Dividends Povor Dividends Dub 0 00 312 00 FM 0 00 0 00 Tess dl  L1800 188 00 0 00 CS Growth 265 00 19 00 0 00 Stock Transactions reported Description Date Aca Proceeds 100 shs  Blue Corp  co r 2002 DO 5 2010 4537 00 2 576 00 01 13 2017 0610 2010 5 345 00 50 sh  Yellow Corp  25 shs  Red Co  1002 2010 10 07 2019 12 212 00 1 0509 VOID CORRECTED 2019 Chase Mortgage 100 Park Avenue New York, NY 10017 Mortgage Interest Statement From p 11 100 00 Copy c Por edhe $ 274 200 00 03 13 2010 13 4296127 434 11 3311 Noah and Joan Arc 1265 W  Riverview Avenue Dayton, OH 45402 11 O ROUNDUP DAY CARE CENTER 245   WILKINSON STREET DAYTON, OH 45402 January 12, 2020 Joan and Noah Arc 1265 W  Riverview Avenue Dayton, OH 45402 Dear Joan and Noah, Thank you for a great 2019 at Roundup  We appreciate your patronage during the year and hope to continue to provide excellent service for Mary Sue in 2020  We have provided the tax information for calendar year 2019 below  Please let us know if you need any additional information  Sincerely, Charles F  Burgundian Charles F  Burgundian Executive Director, Roundup Day Care EIN 54 0983456 Date of service January 1, 2019   December 31, 2019 Amount Paid $3,000 00 Child Mary Sue Arc $143 245 00 $0 00 $143,245 00 The Arc 95 9876556 Income Statement For the Year Ended December 31, 2019 Revenue  Gross Sales Less  Sales Returns and Allowances Net Sales Cost of Goods Sold  Beginning Inventory $10,204 00 Add  Purchases $62 111 00 572315 00 Less  Ending Inventory $9 987 00 Cost of Goods Sold Gross Profit (Loss) Expenses  Dues and Subscriptions $0 00 Estimated Federal Tax Payments $8,000 00 Estimated State Tax Payments $4,000 00 Insurance $780 00 Meals and Entertainment $1 338 00 Miscellaneous $0 00 Payroll Taxes $3 840 00 Professional Fees $1,700 00 $8,400 00 Travel $1,231 00 Utilities $1 254 00 Vehicle Expenses $0 00 Wages $25 113 00 Total Expenses $62 328 00 $40 917 00 $55,656 00 Net Operating Income $25 261 00

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Comprehensive Problem One Noah and Joan Arc's Tax Return Noah and Joan Arc live with their family in Dayton, OH, Noah's Social Security number is

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