Final Exam-Fall 2020 Problem Amy and Charles Bodden files a Joint return. Amy owns a small business with revenue base of less than $75,000 per year. Amy's Social Security number is 115-78-3567 and Charles's 117-78- 2221. Amy is an Avon consultant, she is not employed by Avon. Her investment is at risk. No assets were bought or sold during the 2019 tax year. Her business is run out of her home. The business is classified as a non-store retailer and its code is 454390. She lives in a 3,500 square foot home at 511 Spotts Lane, Decatur, GA 30037. There is a strategically partitioned area with its own entrance and storeroom that is 500 square feet in size. This area is used exclusively for Amy's business. Her home was bought in 2018 although the business started in 2017; assume that the depreciation for the office started in 2017. The home is valued at $415,000. Amy is quite meticulous in her record keeping and keeps a log to record all her travels. During 2019, Amy traversed her State and logged 15,000 miles with 9,500 of those attributable to the business. Assume that expenses for the car would be prorated based on miles driven. The following are expenses and revenues for the 2019 business year. Expenses/revenues Expenses/revenues $ Sales of Avon Products 75,000 Legal expenses 700 Advertising and 1,200 Office supplies 275 Merchandising cost Returns and Allowances 1,200 Sales Expenses -gifts 2. 400 Charitable contribution 600 Office cleaning 840 Car depreciation(business) 450 Taxes and license 3,450 Home office Depreciation MACRS * Purchases for 2019 37,500 Health Insurance 1,200 Telephone and Internet charges 2,200 Car Insurance 720 Miscellaneous expenses 750 Other Insurance 580 Conference expenses (entertainment 3,500 -1,100) (* ) Assume that the office depreciation is prorated based on the square footage of the office to the total home. The beginning inventory is $1,250 and Inventory at the end of 2019 was $3,170. Version 2020 Fall @Young pg. 1