Brian and Corrine Lee are married taxpayers filing jointly. They live in the home they own, located at $3301$ Pacific Coast Highway, Laguna Beach, CA $92651.$ Brian is an optometrist who owns his business; Corrine is a social worker for Orange County. They have two sons, Brady and Hank. During their trip to China last year, they fell in love with a beautiful one$-$year$-$old girl from an orphanage near Shanghai and are in the process of adopting her. The social security numbers of the four current members of their household are $412-34-5670$ for Brian, $412-34-5671$ for Corrine, $412-34-5672$ for Brady, and $412-34-5673$ for Hank. Their birth dates are as follows: Brian, $5/20/1976$; Corrine, $7/23/1976$; Brady, $9/1/2009$; and Hank, $10/12/2011.$ The following are Brian$’$s income and expense information from his business and Corrine$’$s W$-2$ from Orange County.

Brian$’$s optometrist office income and expenses for the current year:

Gross income $ $271,355$

Cost of goods sold $($Beginning inventory $$45,000$; Purchases $$63,000$; Ending inventory $$20,000)$ Cost method used to value closing inventory $88,000$

Advertising $5,000$

Wages $32,000$

Office rent $9,600$

Other $2,100$

The Lees also made $$26,000$ in federal estimated tax payments during the year on the applicable due dates $($$$6,500$ per quarter$).$

The Form W$-2$ Corrine received from Orange County contained this information:

Wages $($box $1)=$ $ $76,925\mathrm{.}04$

Federal W$/$H $($box $2)=$ $ $9,956\mathrm{.}70$

Social security wages $($box $3)=$ $ $76,925\mathrm{.}04$

Social security W$/$H $($box $4)=$ $ $4,769\mathrm{.}35$

Medicare wages $($box $5)=$ $ $76,925\mathrm{.}04$

Medicare W$/$H $($box $6)=$ $ $1,115\mathrm{.}41$

State income taxes $($box $17)=$ $ $2,944\mathrm{.}89$

In addition, the Lees had the following income and expenses during the year:

Income

Interest from CDs at Pacific Coast Bank $ $3,665$

Expenses

Mortgage interest paid to PC Bank for their home $ $29,921$

Property taxes paid on their residence $7,000$

Adoption expenses $($fees$,$ court costs, and attorney$’$s fees$)8,850$

Child care costs at LB Parks and Recreations $(550$ Main St$,$ Laguna Beach, CA $92651,$ EIN $94-3344556)$ after$-$school program for Hank $3,500$

Prepare the Lees$’$ federal tax return. Use Form $1040,$ Schedule A$,$ Schedule B$,$ Schedule C$,$ and any additional appropriate schedules or forms they may need for credits. Do not complete Form $4562($with Schedule C$).($Assume no AMT although it may apply; Form $6251$ or the AMT calculation is not required.$)$ For any missing information, make reasonable assumptions. Assume that Brian follows cash basis of accounting. Use the appropriate Tax Tables or Tax Rate Schedules.

Note: List the names of the taxpayers in the order in which they appear in the problem. Input all the values as positive numbers. Instructions can be found on certain cells within the forms. Round your final answers to the nearest whole dollar amount. Do not skip rows, while entering in Dependents section of Form $1040$ PG$1.$ Scroll down to access Schedule C$,8812,$ Forms $8995,$ and $2441$ shown separately.