Extremely need help in the depreciation part. #3

Individual Tax Return(Assignment#3 ACCT 3327 Fall 2017 Use the following information to complete Steve and Ann Smith' 2016 federal income tax return Any required forms, schedules, and instructions can be found at the IRS Web site (www.ins gov) The instructions can be helpful in completing the forms. All expenditures have supporting documentation Steve and Ann Smith are married and file a join rctun Steve is selfemployed as agales personand An is a school teacher Steve and Ann have one dependent, a son named Eric. The Smiths provide you with the following additional information The Smith's want t contribute to the presidential clection campaign. . The Smith's live at 7320 Maple Avenue, Austin, TX 73301 Steve's birthday is 1/3/1957 and his Social Security number is 550-27-6568. Ann's birthday is 12 5 1970 and her Social Security number is 550-75-1234 Eric's birthday is 3/8/2012 and his Social Security number is 50248-7321. . e rtenge -The Smiths do not itemize their deductions The Smiths do not have any forcign bank accounts or trusts . The Smiths had family health insuranss coverage for the entire year incomc tax of Si7zsocial scurit Medicars ax of $2.915. Ann paid out of pocket for classroom suplies in the Smiths purchased the stock on April 8, 201l, for $55 a share. The transaction was reported to them on a Form 1099-B and the cost basis 1. Ann is a school teacher for Allright Elementary school where she earned $201.000 in salary. Allright Elementary withheld federal amount of $250. She was not reimbursed for these expenses 2. On November 15.2016, The Smiths sold their Apple Corporation stock. They sold 44 shares of common stock for $100 a share. The was reported to the 1RS Steve's started a business in 2016. His business is named "Number One Sales". His business is located at 296 University Street, Austin. TX 73301, and his employer identification number is 27-6548794, Steve's gross receipts during the year were cash method of accounting for his business. Steve made payments in 2016 that would require him to fi required Forms 1099. Steve's business expenses are as follows: Cash metho $599,200 Steve uses the le Forms 1099 and did file all stok 4-1 Advertising Commissions Line of credit interest Mortgage interest Meals and entertainment Contract Labor Liability insurance Fit Professional services Office expenses S 5,400 8,175 21,000 8,500 05 4250 28,000 1,100 Utilities Taxes and licenses Depreciation 2,975 To be calculated On April 19, Steve purchased a new building new furniture and equipment for his office. Steve's expenditures for the new office building are as follows: Asset Cost Date acquired 4/19 Land Office building Computer equipment Office equipment ye S100,000 no deprec at $875,000- 7-Hebr.), zth,-> 2.571%22 evo 1Yer 0%=> /00 $500,000 hat 4/19 5/20 5,000 Steve computes his cost recovery allowance using MACRS. He would like to use the Section 179 jm depreciation. Steve has never claimed Section 179 or bonus deprecation before and would like you to maximize the amount of depreciation that can be deducted 4. They would like to receive a refund of any overpayments, if any Individual Tax Return(Assignment#3 ACCT 3327 Fall 2017 Use the following information to complete Steve and Ann Smith' 2016 federal income tax return Any required forms, schedules, and instructions can be found at the IRS Web site (www.ins gov) The instructions can be helpful in completing the forms. All expenditures have supporting documentation Steve and Ann Smith are married and file a join rctun Steve is selfemployed as agales personand An is a school teacher Steve and Ann have one dependent, a son named Eric. The Smiths provide you with the following additional information The Smith's want t contribute to the presidential clection campaign. . The Smith's live at 7320 Maple Avenue, Austin, TX 73301 Steve's birthday is 1/3/1957 and his Social Security number is 550-27-6568. Ann's birthday is 12 5 1970 and her Social Security number is 550-75-1234 Eric's birthday is 3/8/2012 and his Social Security number is 50248-7321. . e rtenge -The Smiths do not itemize their deductions The Smiths do not have any forcign bank accounts or trusts . The Smiths had family health insuranss coverage for the entire year incomc tax of Si7zsocial scurit Medicars ax of $2.915. Ann paid out of pocket for classroom suplies in the Smiths purchased the stock on April 8, 201l, for $55 a share. The transaction was reported to them on a Form 1099-B and the cost basis 1. Ann is a school teacher for Allright Elementary school where she earned $201.000 in salary. Allright Elementary withheld federal amount of $250. She was not reimbursed for these expenses 2. On November 15.2016, The Smiths sold their Apple Corporation stock. They sold 44 shares of common stock for $100 a share. The was reported to the 1RS Steve's started a business in 2016. His business is named "Number One Sales". His business is located at 296 University Street, Austin. TX 73301, and his employer identification number is 27-6548794, Steve's gross receipts during the year were cash method of accounting for his business. Steve made payments in 2016 that would require him to fi required Forms 1099. Steve's business expenses are as follows: Cash metho $599,200 Steve uses the le Forms 1099 and did file all stok 4-1 Advertising Commissions Line of credit interest Mortgage interest Meals and entertainment Contract Labor Liability insurance Fit Professional services Office expenses S 5,400 8,175 21,000 8,500 05 4250 28,000 1,100 Utilities Taxes and licenses Depreciation 2,975 To be calculated On April 19, Steve purchased a new building new furniture and equipment for his office. Steve's expenditures for the new office building are as follows: Asset Cost Date acquired 4/19 Land Office building Computer equipment Office equipment ye S100,000 no deprec at $875,000- 7-Hebr.), zth,-> 2.571%22 evo 1Yer 0%=> /00 $500,000 hat 4/19 5/20 5,000 Steve computes his cost recovery allowance using MACRS. He would like to use the Section 179 jm depreciation. Steve has never claimed Section 179 or bonus deprecation before and would like you to maximize the amount of depreciation that can be deducted 4. They would like to receive a refund of any overpayments, if any