Fill out form 1040 , form 8829,form 4562, schedule SE, schedule E, form 8949, schedule D, schedule C, schedule B, schedule A,

CUMULATIVE PROBLEM (CHAPTERS 1-12) Jerry R. (age 52, SSN 367-83-9403) and Janet K. (age 48, SSN 361-73-4098) Apps file a joirnt return. They reside at 410 E. Vernon Avenue, Carlock, Illinois 61725-1287. Use the following information to prepare the Appses' tax return. Use the approach shown in Examples 10-12 Chapter 11 to compute the Appses' tax liability (1101.03). They both elect to have $3 to go to the Presidential election campaign fund and file their return on April 10, 2018. The Appses' household includes David A. Apps, their 12-year-old son (SSN 965-26-4381), and Edwin R. Apps (SSN 157-43-2587), Jerry's 78-year-old father.Janet and Jerry provide over half of the support of both David and Edwin. David has no income of his own; Edwin received $4,500 in nontaxable social security benefits during the year. Jerry works as a carpenter. The information on his Form W-2 is shown below. Jerry is an active participate in his employers 4018) plan. Through his employer,Jerry buys health care insurance or his family that complies with the ACA mandate Taxable wages $52,000 Social security and Medicare tax withheld Federal income tax withheld State income tax withheld 2,490 Janet owns and operates J&J Networking. The principal business code is 454390. Janet has no employer ID number. She uses the accrual basis in her business and the cost method for 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 regularly for business. Janet materially participates in the business. Information relating to her busines operation is as follows. Gross receipts Returns and allowances Beginning inventory $60,950 900 2,700 28,625 3,825 Ending inventory 400 Office expense S 80 310 1,035 490 1,000 ing 24 Supplies Bank service charges Contribution to SIMPLE plan Commissions Depreciation on equipment 10,000 Travel Meals and entertainment Business seminars Other business taxes placed in service in 2016 Dues and publications Insurance (business) 1,700 220 Miscellaneous expenses 650 Postage expense 35 110 In addition to the above expenses, Janet uses her personal car in her business. She keeps good records of her business mileage and uses the standard mileage method. The car was first used in the business on May 1, 2015. During 2017 Janet drove 7,631 miles, of which 1,262 were driven business. The rest were personal miles. Information related to the Appses' home Total area of home Area used for business FMV of home, for purposes of Form 8829, line 36 Adjusted basis of home, for purposes o Value of land, Form 8829, line 37 Year the home office was first placed in service Mortgage interest Real estate taxes 1,800 square feet 180 square feet 240,000 195,000 20.000 1991 $6.250 2,400 680 3,200 f Form 8829, line 36 s insurance Utilities The Appses own a four-unit apart ment building that t hey actively manage. They paid $150,000 in 1994. Of this amount, $25,000 was allocated to the land. The CRS to depreciate the building, which is located at 19 Sunset Road in Carlock, IL 60501. units were rented for the entire year. Information on the apartments is shown below. Rental revenue Rental expenses: All S33,600 Real estate taxes Utilities Insurance Cleaning and maintenance Legal and professional fees Mortgage interest s 4,800 1,780 1,550 5,200 125 7,200 827 325 The Appses had other income consisting of the following. Neither Jerry nor Janet had any interes in a foreign trust or bank account. Interest from Champion Savings Interest on bonds from the State of Illinois Qualified dividends from General Morris Corporation Qualified dividends from Eagle Corporation Qualified dividends from Roper Corporation $2,750 930 425 150 650 have a $4,950 long-term capital loss carryover from 2016. They also sold the following f common stock during 2017. No cost basis was provided on any of the Form 1099-Bs AcquiredCost 100 South Corp. 3-14-16 1,500 1-24-17 6,500 Number Shares Roper 100 50 200 Sales Price 6-12-17 $7,500 3,250 7-20-17 2,950 Sold 5-1-09 2-14-17 $5,000 Fastco Corp. Eagle Corp. 3-16-11 6,200 8-10-17 8,100 A summary of the receipts for payments the Appses made during the year includes: Medical expenses (unreimbursed): Prescription medicines 50 David s 25 30 Edwin s 200 Doctor bills Dentist bills Hospital bills Iransportation Eyeglasses Over-the-counter medicine $1,000 $1,275 790 390 2,100 3,900 120 247 150 200 150 40 1,800 72 122 50 24 125 30 0 16 70 0 axes: Sales tax Balance due on 2016 state income tax return Balance due on 2016 federal income tax return Real estate taxes $1,200 25 725 2,400 Interest: Mortgage interest Credit card interest $6,250 975 Cash contributions: Church $2,300 250 United Wa Presidential election campaign In addition to the cash contributions, the Appses donated five shares of S& W common stock to their church on July 30. The stock had been purchased on December 15, 2015, for $2.200. The fair market value of the stock on July 30 was $6,000. lanet and Jerry each contribute the maximum amount allowed for 2017 to their respective traditional) IRAs. They also make the following other payments during the year: Rental of safe deposit box for securities Tax preparation fee (2016 Form 1040) Jerry's union dues Automobile registration $ 120 524 1,200 CUMULATIVE PROBLEM (CHAPTERS 1-12) Jerry R. (age 52, SSN 367-83-9403) and Janet K. (age 48, SSN 361-73-4098) Apps file a joirnt return. They reside at 410 E. Vernon Avenue, Carlock, Illinois 61725-1287. Use the following information to prepare the Appses' tax return. Use the approach shown in Examples 10-12 Chapter 11 to compute the Appses' tax liability (1101.03). They both elect to have $3 to go to the Presidential election campaign fund and file their return on April 10, 2018. The Appses' household includes David A. Apps, their 12-year-old son (SSN 965-26-4381), and Edwin R. Apps (SSN 157-43-2587), Jerry's 78-year-old father.Janet and Jerry provide over half of the support of both David and Edwin. David has no income of his own; Edwin received $4,500 in nontaxable social security benefits during the year. Jerry works as a carpenter. The information on his Form W-2 is shown below. Jerry is an active participate in his employers 4018) plan. Through his employer,Jerry buys health care insurance or his family that complies with the ACA mandate Taxable wages $52,000 Social security and Medicare tax withheld Federal income tax withheld State income tax withheld 2,490 Janet owns and operates J&J Networking. The principal business code is 454390. Janet has no employer ID number. She uses the accrual basis in her business and the cost method for 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 regularly for business. Janet materially participates in the business. Information relating to her busines operation is as follows. Gross receipts Returns and allowances Beginning inventory $60,950 900 2,700 28,625 3,825 Ending inventory 400 Office expense S 80 310 1,035 490 1,000 ing 24 Supplies Bank service charges Contribution to SIMPLE plan Commissions Depreciation on equipment 10,000 Travel Meals and entertainment Business seminars Other business taxes placed in service in 2016 Dues and publications Insurance (business) 1,700 220 Miscellaneous expenses 650 Postage expense 35 110 In addition to the above expenses, Janet uses her personal car in her business. She keeps good records of her business mileage and uses the standard mileage method. The car was first used in the business on May 1, 2015. During 2017 Janet drove 7,631 miles, of which 1,262 were driven business. The rest were personal miles. Information related to the Appses' home Total area of home Area used for business FMV of home, for purposes of Form 8829, line 36 Adjusted basis of home, for purposes o Value of land, Form 8829, line 37 Year the home office was first placed in service Mortgage interest Real estate taxes 1,800 square feet 180 square feet 240,000 195,000 20.000 1991 $6.250 2,400 680 3,200 f Form 8829, line 36 s insurance Utilities The Appses own a four-unit apart ment building that t hey actively manage. They paid $150,000 in 1994. Of this amount, $25,000 was allocated to the land. The CRS to depreciate the building, which is located at 19 Sunset Road in Carlock, IL 60501. units were rented for the entire year. Information on the apartments is shown below. Rental revenue Rental expenses: All S33,600 Real estate taxes Utilities Insurance Cleaning and maintenance Legal and professional fees Mortgage interest s 4,800 1,780 1,550 5,200 125 7,200 827 325 The Appses had other income consisting of the following. Neither Jerry nor Janet had any interes in a foreign trust or bank account. Interest from Champion Savings Interest on bonds from the State of Illinois Qualified dividends from General Morris Corporation Qualified dividends from Eagle Corporation Qualified dividends from Roper Corporation $2,750 930 425 150 650 have a $4,950 long-term capital loss carryover from 2016. They also sold the following f common stock during 2017. No cost basis was provided on any of the Form 1099-Bs AcquiredCost 100 South Corp. 3-14-16 1,500 1-24-17 6,500 Number Shares Roper 100 50 200 Sales Price 6-12-17 $7,500 3,250 7-20-17 2,950 Sold 5-1-09 2-14-17 $5,000 Fastco Corp. Eagle Corp. 3-16-11 6,200 8-10-17 8,100 A summary of the receipts for payments the Appses made during the year includes: Medical expenses (unreimbursed): Prescription medicines 50 David s 25 30 Edwin s 200 Doctor bills Dentist bills Hospital bills Iransportation Eyeglasses Over-the-counter medicine $1,000 $1,275 790 390 2,100 3,900 120 247 150 200 150 40 1,800 72 122 50 24 125 30 0 16 70 0 axes: Sales tax Balance due on 2016 state income tax return Balance due on 2016 federal income tax return Real estate taxes $1,200 25 725 2,400 Interest: Mortgage interest Credit card interest $6,250 975 Cash contributions: Church $2,300 250 United Wa Presidential election campaign In addition to the cash contributions, the Appses donated five shares of S& W common stock to their church on July 30. The stock had been purchased on December 15, 2015, for $2.200. The fair market value of the stock on July 30 was $6,000. lanet and Jerry each contribute the maximum amount allowed for 2017 to their respective traditional) IRAs. They also make the following other payments during the year: Rental of safe deposit box for securities Tax preparation fee (2016 Form 1040) Jerry's union dues Automobile registration $ 120 524 1,200