Comprehensive Problems 6 Richard McCarthy (born 2/14/64: Social Security number 100-10-9090) and Christine McCart (bom 6/1/1966: Social security number 101-21-3434) have a 19-year-old son (born 10/2/99 Social Security number 555-55-1212), Jack who is a full-time student at the University of Key West. The McCarthys also have a 12-year-old daughter (Social Security number 444-23-1212) Justine, that lives with them. Richard is the CEO at a national paper company. His 2018 Form W-2: a poyo 100-10-9090 Employer delication number 32-5656567 e Empby's name, address, and AP code Mufflin-Dunder Paper 302 Lackawanna Ave. Scranton, PA 18503 Sale accurate, OMB No. 1845-2008 FAST D e Wages, tips, con comprison 230,000.00 sopisecury Wages 128,400.00 5 Medicare wage and tips 230,000.00 7 Social Security pe Ver the website file www.is gowlafile Forncome tax with 66,000.00 SOC cury x WTS 7,960.80 6 Medicare fax withhold 3,605.00 Macata tips d Control sumber Verification code 10 Dependent care benefits 1 Nongsled plans 12 Senarchons for box 12 implyod's first one and in t rare Richard McCarthy 32 Sleepy Hollow Rd. Clarks Summit, PA 18411 Employee's addu wd ZIP code Employs starumber PA 1234834 Bawat 230,000.00 7 State incong 13,800.00 Lo u ps, 19 Local connets 2 La W.2 Wage and Tax W-2 py B-To Be Fled With Employee's FEDERAL Tax Retum. Information is being tumished to the internal Revenue Service Statement 2018 Department of the Treasury Internal Recue Service the is an antometrist and operates her own practice (The Eyes of March in to sole proprietor. The shop address is 1030 Morgan Highway, Clarks Summit, PA 18411 and the business code is 621320. Christine keeps her books on the accrual basis and her bookkeeper provided the following information: $270,000 9,000 $ 24,000 120,000 30,000 Gross sales Returns Inventory: Beginning inventory Purchases Ending inventory Rent Insurance Professional fees Payroll Payroll taxes Utilities Office expenses Depreciation 24,000 11,000 3,000 37,000 2,800 4,000 2,000 5,000 The McCarthys have a nanny/housekeeper they paid $12,000 during 2018. They did not withhold income or FICA taxes. The McCarthys paid Pennsylvania state unemployment tax of $378 in 2018. Christine received a 2018 Form 1099-INT from the National Bank of Scranton that listed intere income of $23,400. Note that McCarthys reasonably allocate $1,278 to state income tax expens for purposes of the Net Investment Income tax. The McCarthys paid the following in 2018: Home mortgage interest Property taxes Estimated state income tax payments Estimated Federal income tax payments Charitable contributions (all cash) $15,600 5,600 3,000 11,000 7,600 Required: Complete the McCarthys federal tax return for 2018. Use Form 104. Schedule Schedule 4. Schedule A. Schedule B. Schedule C, Schedule H, Schedule SE B. Schedule C Schedule H Schedule SE. Form 8959, and Form 8960 to complete this tax return. Make realistic assumptions about any mus Tomore any alternative minimum tax. Do not complete li 4052 which is used for Comprehensive Problems 6 Richard McCarthy (born 2/14/64: Social Security number 100-10-9090) and Christine McCart (bom 6/1/1966: Social security number 101-21-3434) have a 19-year-old son (born 10/2/99 Social Security number 555-55-1212), Jack who is a full-time student at the University of Key West. The McCarthys also have a 12-year-old daughter (Social Security number 444-23-1212) Justine, that lives with them. Richard is the CEO at a national paper company. His 2018 Form W-2: a poyo 100-10-9090 Employer delication number 32-5656567 e Empby's name, address, and AP code Mufflin-Dunder Paper 302 Lackawanna Ave. Scranton, PA 18503 Sale accurate, OMB No. 1845-2008 FAST D e Wages, tips, con comprison 230,000.00 sopisecury Wages 128,400.00 5 Medicare wage and tips 230,000.00 7 Social Security pe Ver the website file www.is gowlafile Forncome tax with 66,000.00 SOC cury x WTS 7,960.80 6 Medicare fax withhold 3,605.00 Macata tips d Control sumber Verification code 10 Dependent care benefits 1 Nongsled plans 12 Senarchons for box 12 implyod's first one and in t rare Richard McCarthy 32 Sleepy Hollow Rd. Clarks Summit, PA 18411 Employee's addu wd ZIP code Employs starumber PA 1234834 Bawat 230,000.00 7 State incong 13,800.00 Lo u ps, 19 Local connets 2 La W.2 Wage and Tax W-2 py B-To Be Fled With Employee's FEDERAL Tax Retum. Information is being tumished to the internal Revenue Service Statement 2018 Department of the Treasury Internal Recue Service the is an antometrist and operates her own practice (The Eyes of March in to sole proprietor. The shop address is 1030 Morgan Highway, Clarks Summit, PA 18411 and the business code is 621320. Christine keeps her books on the accrual basis and her bookkeeper provided the following information: $270,000 9,000 $ 24,000 120,000 30,000 Gross sales Returns Inventory: Beginning inventory Purchases Ending inventory Rent Insurance Professional fees Payroll Payroll taxes Utilities Office expenses Depreciation 24,000 11,000 3,000 37,000 2,800 4,000 2,000 5,000 The McCarthys have a nanny/housekeeper they paid $12,000 during 2018. They did not withhold income or FICA taxes. The McCarthys paid Pennsylvania state unemployment tax of $378 in 2018. Christine received a 2018 Form 1099-INT from the National Bank of Scranton that listed intere income of $23,400. Note that McCarthys reasonably allocate $1,278 to state income tax expens for purposes of the Net Investment Income tax. The McCarthys paid the following in 2018: Home mortgage interest Property taxes Estimated state income tax payments Estimated Federal income tax payments Charitable contributions (all cash) $15,600 5,600 3,000 11,000 7,600 Required: Complete the McCarthys federal tax return for 2018. Use Form 104. Schedule Schedule 4. Schedule A. Schedule B. Schedule C, Schedule H, Schedule SE B. Schedule C Schedule H Schedule SE. Form 8959, and Form 8960 to complete this tax return. Make realistic assumptions about any mus Tomore any alternative minimum tax. Do not complete li 4052 which is used for