GROUP 4: COMPREHENSIVE PROBLEMS 1. Trish Himple owns a retail family clothing store. Her store is located at 4321 1234321 and her Social Security number is 123-45-6789. Trish keeps her books on an Heather Drive, Henderson, NV 89002. Her employer identification number is 95- 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 Payroll Payroll taxes Utilities Office supplies Advertising $ 85,000 101,000 $340,000 14,000 186,000 mom 71,000 $115,000 24,400 2,000 5,000 deso 000 56,400 24,400 2,200 750 6,200 hubstunsm 1.801 Trish's bookkeeper has provided the following book-basis fixed asset rollforward: Himple Retail Fixed Asset Rollforward 12/31/2020 (book basis) DEPR W COST 2018 ASSET IN SERVICE METHOD LIFE CASH REGISTER 12/15/2018 SL 5 BASIS 9,900.00 9,900.00 DEPR 165.00 165.00 2019 2020 DEPR DEPR 1,980.00 1,980.00 1,980.00 1,980.00 ACCUM DEPR NET BOOK VALUE 4,125.00 5,775.00 4,125.00 2018 TOTAL ADDITIONS 5,775.00 RETAIL FIXTURES 9/12/2019 SL 7 4,750.00 FURNITURE 9/12/2019 SL 7 3,900.00 2019 TOTAL ADDITIONS 8,650.00 TOTAL 18,550.00 165.00 226.19 185.71 557.14 411.90 1,235.71 2,391.90 3,215.71 678.57 904.76 742.85 3,845.2400 3,157.15 1,647.61 5,772.61 7,002.39 TW 12,777.39 DELIVERY TRUCK DESK AND CABINETRY COMPUTER 6/1/2020 SL 6/1/2020 SL 6/1/2020 SL 5 37,500.00 4,375.00 4,375.00 33,125.00 7111,900.00 08 991.672991.67 10,908.33 5 2020 TOTAL ADDITIONS TOTAL 2,800.00 52,200.00 70,750.00 326.67 5,693.34 326.67 2,473.33 5,693.34 165.00 2,391.90 8,909.05 11,465.95 59,284.05 46,506.66 The truck is not considered a passenger automobile for purposes of the luxury automobile limitations. odi alle .002 Trish also has a qualified home office of 250 sq. ft. Her home is 2,000 sq. ft. Her 2015 at 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 2020 related to the entire home: Utilities $3,000 Cleaning 1,000 Insurance betcool doodixat 1,100 Property taxes 2,000 Questions and Problems Required: For tax purposes, Trish elected out of bonus depreciation in all years except 2020. She did not elect immediate expensing in any year. The tax lives of the assets are bine the same as the book lives shown in the fixed asset schedule above. Complete Trish's Schedule C, Form 8829, and Form 4562 (as necessary). Make realistic assumptions about any missing data. 8-51 Tax Returns Content Question 1 Fill in the answers for Chapter 8 problem 1 below: Comprehensive Problem 1 Form 4562, Special Depreciation Allowance (Line 14) Blank 1 Form 4562, MACRS Deduction for Assets Placed in Service Before 2020 (Line 17) Blank 2 Schedule C, Depreciation (Line 13) Blank 3 Schedule C, Total Expenses (Line 28) Blank 4 Schedule C, Net Profit or (Loss) (Line 31) Blank 5