Essentials of Federal income Taxation CUMULATIVE PROBLEM (CHAPTERS 1-12) Jerry R. fage 52, SSN 367-83-9403) and Janet K. (age 48, SSN 361-73-4098) Apps l return. They reside at 410 E. Vernon Avenue, Carlock, Illinois 61723-1287. Use the e information to prepare the Appoes' tax return. Use the approach shown in Example Chap r ll to compute the App es tarl ability 110 1.03). They both elect tohave 53 2in the residential election campaign fund and file their return on April 10, 2017. The Appses household includes David A. Apps, their 12-year-old son (SSN 965-26-3 Edwin R. Apps (SSN 157-43-258), Jerry's 78-year-old father. Janet and Jerry provide overhuied the support of both David and Edwin. David has no income of his own; Edwin in nontaxable social security benefits during the year received $4,500 as a carpenter. The information on his Form W-2 is shown below Jerry is an his family that complies with the ACA mandate. Taxable wages Social security and Medicare tax withheld Federal income tax withheld State income tax withheld 3,978 4,970 2,490 Janet owns and operates J&] Nerworking. The principal business code is 454390. Janer has no employer ID number. She uses the accrual basis in her business and the cost method fo valuing the inventory, No changes have been made in the inventory system. Janet operated her business for all 12 months and has an office in her home that she uses exclusively and for business. Janet materially participares in the business. Information relating to her business regularly Gross receipts Returns and allowances Beginning inventory 860.950 900 2,700 28,625 3,825 Ending inventory s 400 Ofice expense Bank service charges Contribution to SIMPLE plan Commissions Depreciation on equipment S 80 310 1,035 24 Supplies 10,000Travel 3.200 1.700 650 Meals and entertainment490 Business seminars Other business taxes Miscellaneous expenses placed in service in 2015 1,000 560 35 110 Dues and publications Postage expense In addition to the above expenses, Janet uses her personal car in her business, She keeps good records of her b the business on May 1,2013. During 2016 Janet drove 7,631 miles, of which 1.250 were for business. The rest were personal miles. Essentials of Federal income Taxation CUMULATIVE PROBLEM (CHAPTERS 1-12) Jerry R. fage 52, SSN 367-83-9403) and Janet K. (age 48, SSN 361-73-4098) Apps l return. They reside at 410 E. Vernon Avenue, Carlock, Illinois 61723-1287. Use the e information to prepare the Appoes' tax return. Use the approach shown in Example Chap r ll to compute the App es tarl ability 110 1.03). They both elect tohave 53 2in the residential election campaign fund and file their return on April 10, 2017. The Appses household includes David A. Apps, their 12-year-old son (SSN 965-26-3 Edwin R. Apps (SSN 157-43-258), Jerry's 78-year-old father. Janet and Jerry provide overhuied the support of both David and Edwin. David has no income of his own; Edwin in nontaxable social security benefits during the year received $4,500 as a carpenter. The information on his Form W-2 is shown below Jerry is an his family that complies with the ACA mandate. Taxable wages Social security and Medicare tax withheld Federal income tax withheld State income tax withheld 3,978 4,970 2,490 Janet owns and operates J&] Nerworking. The principal business code is 454390. Janer has no employer ID number. She uses the accrual basis in her business and the cost method fo valuing the inventory, No changes have been made in the inventory system. Janet operated her business for all 12 months and has an office in her home that she uses exclusively and for business. Janet materially participares in the business. Information relating to her business regularly Gross receipts Returns and allowances Beginning inventory 860.950 900 2,700 28,625 3,825 Ending inventory s 400 Ofice expense Bank service charges Contribution to SIMPLE plan Commissions Depreciation on equipment S 80 310 1,035 24 Supplies 10,000Travel 3.200 1.700 650 Meals and entertainment490 Business seminars Other business taxes Miscellaneous expenses placed in service in 2015 1,000 560 35 110 Dues and publications Postage expense In addition to the above expenses, Janet uses her personal car in her business, She keeps good records of her b the business on May 1,2013. During 2016 Janet drove 7,631 miles, of which 1.250 were for business. The rest were personal miles