Gary Holstrum (SSN: 222-33-4444; DOB: 04/01/1975) and his wife Karen Holstrum (SSN: 555- 66-7777 DOB: 09/03/1975) have two children; Antonio (SSN: 888-99-7777; DOB: 02/04/2009) and Georgiana (SSN: 222-55-4444; DOB: 02/07/20011). Karen has one child from a previous marriage, Daniel Jones, age 22, a full-time student (234-56-7890). They live at: 1234 Canal Blvd, Thibodaux, LA 70301. Karen is a seventh grade English teacher at the local middle school. Gary has his own manufacturing business. Gary and Karen provided over half of the support of their son, Daniel who earned S15,000 during the summer as an accounting intern for a national accounting firm. Gary's business, Kool Beads, is an unincorporated manufacturer of Mardi Gras beads. The factory is located at 1003 LaPlace Avenue, New Orleans, LA 34455. Gary uses the accrual method of accounting in his business. He has the following transactions during the 2018 year Sales (less sales returns and allowances) Purchases Direct factory labor Utilities Insurance Office Expenses Administrative Salary Expenses Legal Services Travel Expenses ($4,000 for meal) Maintenance $1,075,000 600,000 175,000 13,000 80,000 8,000 36,000 6,000 28,000 20,000 Kool's inventory on December 31, 2018 is $175,000. Inventory was S150,000 on January l 2018 Kool's depreciation schedule is as follows: 1. Purchased $100,500 of office furniture and equipment held for business use on March 4, 2018. An election is made to expense the acquisition cost under Section 179. The assets have a 7-year life. Gary elects not to use the bonus depreication. Depreciation on assets acquired and placed into service before 2018 Property Placed into service 2. PrOTOosJana 015 Cost S 5,000 34,000 160,000 40,000 Method MACRS MACRS MACRS Pro Class Small Tools July 2016 3-year year 39-year Factory May 2015 May 2015 Land Gary did not elect a Section 179 deduction for any of the assets above, nor did he take advantage of the depreciation bonus. Gary sold the Truck on September 5, 2018 for $20,000. Gary has never sold any asset:s relating to his business before this transaction. Gary Holstrum (SSN: 222-33-4444; DOB: 04/01/1975) and his wife Karen Holstrum (SSN: 555- 66-7777 DOB: 09/03/1975) have two children; Antonio (SSN: 888-99-7777; DOB: 02/04/2009) and Georgiana (SSN: 222-55-4444; DOB: 02/07/20011). Karen has one child from a previous marriage, Daniel Jones, age 22, a full-time student (234-56-7890). They live at: 1234 Canal Blvd, Thibodaux, LA 70301. Karen is a seventh grade English teacher at the local middle school. Gary has his own manufacturing business. Gary and Karen provided over half of the support of their son, Daniel who earned S15,000 during the summer as an accounting intern for a national accounting firm. Gary's business, Kool Beads, is an unincorporated manufacturer of Mardi Gras beads. The factory is located at 1003 LaPlace Avenue, New Orleans, LA 34455. Gary uses the accrual method of accounting in his business. He has the following transactions during the 2018 year Sales (less sales returns and allowances) Purchases Direct factory labor Utilities Insurance Office Expenses Administrative Salary Expenses Legal Services Travel Expenses ($4,000 for meal) Maintenance $1,075,000 600,000 175,000 13,000 80,000 8,000 36,000 6,000 28,000 20,000 Kool's inventory on December 31, 2018 is $175,000. Inventory was S150,000 on January l 2018 Kool's depreciation schedule is as follows: 1. Purchased $100,500 of office furniture and equipment held for business use on March 4, 2018. An election is made to expense the acquisition cost under Section 179. The assets have a 7-year life. Gary elects not to use the bonus depreication. Depreciation on assets acquired and placed into service before 2018 Property Placed into service 2. PrOTOosJana 015 Cost S 5,000 34,000 160,000 40,000 Method MACRS MACRS MACRS Pro Class Small Tools July 2016 3-year year 39-year Factory May 2015 May 2015 Land Gary did not elect a Section 179 deduction for any of the assets above, nor did he take advantage of the depreciation bonus. Gary sold the Truck on September 5, 2018 for $20,000. Gary has never sold any asset:s relating to his business before this transaction