Comprehensive Problem Two Gregory and Lulu Clifden's Tax Return Gregory R. and Lulu B. Clifden live with their family at the Rock Glen House Bed & Breakfast, which Gregory operates. The Bed & Breakfast (B&cB) is located at 33333 Fume Blanc Way, Temecula, CA 92591. Gregory and Lulu enjoy good health and eyesight. 1. The Clifdens have three sons. Gerald is 17 years old, Gary is 12 years old, and Glenn 3 Fume is 10 years old. llowin 2. The Rock Glen House B&B is operated as a sole proprietorship and had the f income and expenses for the year: Room rental income Vending machine income Advertising expense Depreciation for book and tax purposes Mortgage interest on the B&B Wages of cleaning person Taxes and licenses Supplies Business insurance Laundry expenses Accounting fees Office expenses Utilities $137,775 2,100 4,810 18,100 33,010 17,540 6,420 8,870 6,300 4,290 1,850 2,400 6,350 All of the above amounts relate to the business portion of the Bed &e Breakfast; reakfast; the personal portion is accounted for separately The Rock Glen House B&B uses the cash method of accounting and has no inventory. The employer iax ID number is 95-1234567 3. The Clifdens made estimated fe deral income tax payments of $2,030 and es timated state income tax payments of $6,000 (all made during 2017) 4. Lulu is a substitute schoolteacher with the local school district. For the current year, Lulu's Form W-2 from the school district showed the followin FAST! Use 10.300.00 10,300.00 10,300.00 256-43-8819 OMB No. 1545-0008 wwwi.golee Erplayer 43-7654321 1 ,650.00 s name, address, and ZP code Temecula Valley Unified School Dist. 31350 Rancho Vista Road Temecula, CA 92592 wages and tos 149.35 Socal secunty tps Employees's frst name and rif Last rame Lulu B. Clifden 33333 Fume Blanc Way Temecula, CA 92591 f Employsa's address and ZIP code CA L 10,300.00 380.00 W- statement W-22017 Wage and Tax Department of the Treasury-Irterrai Ranveus Serics FormW Statement Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnishod to the internal Ravenue Service. 5. Gregory is retired from the U.S. Navy. His annual statement from the Navy, Form 1099-R is on Page D-10