Form 4562 X Part II Special Depreciation Allowance and Other Depreciation (Don't include listed property. See instructions.) 14 Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year. See instructions . . . . . . . 14 52,200 15 Property subject to section 168(f)(1) election 15 16 Other depreciation (including ACRS) . . . . . 16 Part III MACRS Depreciation (Don't include listed property. See instructions.) Section A 17 MACRS deductions for assets placed in service in tax years beginning before 2019 . . . . 17 3,651 X 18 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here . . . . 0Comprehensive Problem 8-1 Trish Himple owns a retail family clothing store. Her store is located at 4321 Heather Drive, Henderson, NV 89002. Her employer identification number is 95-1234321 and her Social Security number is 123-45-6789. Trish keeps her books on an accrual basis. The income and expenses for the year are: Gross sales Returns and allowances Expenses: Beginning inventory (at cost) Add: purchases Cost of goods available for sale Less: ending inventory (at cost) Cost of goods sold Rent Insurance Legal and accounting fees $ 85,000 101,000 $186,000 75,000 $352,000 4,000 $111,000 24,200 1,800 5,600 Legal and accounting fees Payroll Payroll taxes Utilities Office supplies Advertising 5,600 56,430 4,400 2,100 750 6,200 Instructions Trish's bookkeeper has provided the book-basis fixed asset roll forward to be used in computing the depreciation (see separate tab). For tax purposes, Trish elected out of bonus depreciation in all years except 2019. She did not elect immediate expensing in any year. The tax lives of the assets are the same as the book lives shown in the fixed asset schedule. The truck is not considered a passenger automobile for purposes of the luxury automobile limitations. Trish also has a qualified home office of 250 sqg. ft. Her home is 2,500 sq. ft. Her 2014 purchase price and basis in the home, not including land, is $100,000 (the home's market value is $150,000). She incurred the following costs in 2019 related to the entire home: Utilities $2,800 Cleaning 900 Insurance 1,100 Property taxes 2,000 Schedule C 8 Advertising............. 9 Car and truck expenses (see 10 11 12 13 14 instructions) . . .......... Commissions and fees . . . . Contract labor (see instructions) Depletion . . ........... Depreciation and section 179 expense deduction (not included in Part III) (see instructions) . . . Employee benefit programs 8 9 10 11 12 18 19 20 21 22 23 24 Office expense (see instructions) . ... Pension and profit-sharing plans . . . . Rent or lease (see instructions): . . . Vehicles, machinery, and equipment Other business property . .. ...... Repairs and maintenance . ... ... Supplies (not included in Part III) . . . Taxes and licenses . . . ......... 18 19 20a 20b 21 22 23 4,400 | v 24a Schedule of Fixed Asset Rollforward X Fixed Asset Rollforward 12/31/2019 (book basis) DEPR COST 2017 2018 2019 ACCUM NET BOOK ASSET IN SERVICE METHOD LIFE BASIS DEPR DEPR DEPR DEPR VALUE CASH REGISTER 2/15/2017 SL 5 9,900.00 1,815.00 1,980.00 1,980.00 5,775.00 4,125.00 2017 TOTAL ADDITIONS 9,900.00 1,815.00 1,980.00 1,980.00 5,775.00 4,125.00 RETAIL FIXTURES 10/12/2018 SL 7 4,750.00 169.64 678.57 848.21 3,901.79 FURNITURE 10/12/2018 SL 3,900.00 139.29 557.14 696.43 3,203.57 2018 TOTAL ADDITIONS 8,650.00 308.93 1,235.71 1,544.64 7,105.36 TOTAL 18,550.00 1,815.00 2,288.93 3,215.71 7,319.64 11,230.36