D-6 Appendix D 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&B) 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 is 10 years old 2. The Rock Glen House B&B is operated as a sole proprietorship and had the following 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 2,100 4,810 18,100 33,010 17,540 6,420 8,870 6,300 4,290 1,850 2,400 6,350 Taxes and licenses Business insurance Laundry expenses Accounting fees Office expenses Utilities All of the above amounts relate to the business portion of the Bed & Breakfast 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 tax ID number is 95-1234567 federal income tax payments of $2,000 and estimated 4Lulu is a substitute schoolteacher with the local school district. For the current year, state income tax payments of $6,000 (all made during 2017) Lulu's Form W-2 from the school district showed the following e file 43-7654321 Temecula Valley Unified School Dist 31350 Rancho Vista Road Temecula, CA 92592 10,300.00 638.60 10,300.00 149.3 Lulu B. Clifden 33333 Fume Blanc Way Temecula, CA 92591 Wage and Tax 017 5. Gregory is retired from the U.S. Navy. His annual statement from the Navy, Form 1099-R is on Page D-10. D-6 Appendix D 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&B) 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 is 10 years old 2. The Rock Glen House B&B is operated as a sole proprietorship and had the following 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 2,100 4,810 18,100 33,010 17,540 6,420 8,870 6,300 4,290 1,850 2,400 6,350 Taxes and licenses Business insurance Laundry expenses Accounting fees Office expenses Utilities All of the above amounts relate to the business portion of the Bed & Breakfast 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 tax ID number is 95-1234567 federal income tax payments of $2,000 and estimated 4Lulu is a substitute schoolteacher with the local school district. For the current year, state income tax payments of $6,000 (all made during 2017) Lulu's Form W-2 from the school district showed the following e file 43-7654321 Temecula Valley Unified School Dist 31350 Rancho Vista Road Temecula, CA 92592 10,300.00 638.60 10,300.00 149.3 Lulu B. Clifden 33333 Fume Blanc Way Temecula, CA 92591 Wage and Tax 017 5. Gregory is retired from the U.S. Navy. His annual statement from the Navy, Form 1099-R is on Page D-10
