Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello, Could you guys help me to prepare this tax return please Thank you Texas Southern University Jesse H. Jones School of Business Accounting 655-

Hello,
Could you guys help me to prepare this tax return please
Thank you image text in transcribed
image text in transcribed
Texas Southern University Jesse H. Jones School of Business Accounting 655- Tax Return This tax return is due Tuesday, December 9, 2017 at 7:00 pm NOT 7:01 pm Please prepare this tax return using the appropriate forms and schedules. You should sign it as the preparer Shelton Edmonds, is the sole owner of Edmonds Accounting Services. He started the company, which is organized as a sole proprietorship, on February 20, 2013. For this year, Edmonds Accounting Services reported the following amounts of income and expenses: 540,000 Fee revenues 125,000) Employee wages 9,563) Payroll taxes Advertising 3,600) 2,400) nsurance Utilities 7,200) 10,000) Rent Supplies 5,000) 35,000) Selling expenses Shelton purchased a car on February 21. 2016 for 34,000. He uses the car for both business and personal purposes. Mileage logs indicate that Shelton put 50,000 miles on the car this year. of that total, 38,000 miles were business related and the remaining 12,000 were related to personal travel. Shelton wants to deduct the maximum amount allowable for business use of his car. Shelton also purchased office equipment, computers and other five-year property for use in the business. He purchased 305,000 worth of such depreciable assets in March. He wants to deduct the maximum allowable under Code Sec. 179 and depreciate the remaining cost (if any) under the MACRS system Selling expenses include s 6,000 spent for meals and entertainment incurred on Shelton's sales calls during the year. Selling expenses a include 12,000 in illegal payments to city officials paid to secure lucrative contracts with the city. Shelton was uncomfortable making this payment, but reasoned that the contract was important to get his business off to a good start. Selling expenses also include gasoline, parking fees, and other documented auto expenses totaling s 2,500 attributable to Shelton's sales calls Assume that Shelton reports the revenue and expenses of Edmonds Accounting Services on Schedule C, that he uses the cash method of accounting, and that he lives at 3100 Cleburne, Houston, Tx 77004. Texas Southern University Jesse H. Jones School of Business Accounting 655- Tax Return This tax return is due Tuesday, December 9, 2017 at 7:00 pm NOT 7:01 pm Please prepare this tax return using the appropriate forms and schedules. You should sign it as the preparer Shelton Edmonds, is the sole owner of Edmonds Accounting Services. He started the company, which is organized as a sole proprietorship, on February 20, 2013. For this year, Edmonds Accounting Services reported the following amounts of income and expenses: 540,000 Fee revenues 125,000) Employee wages 9,563) Payroll taxes Advertising 3,600) 2,400) nsurance Utilities 7,200) 10,000) Rent Supplies 5,000) 35,000) Selling expenses Shelton purchased a car on February 21. 2016 for 34,000. He uses the car for both business and personal purposes. Mileage logs indicate that Shelton put 50,000 miles on the car this year. of that total, 38,000 miles were business related and the remaining 12,000 were related to personal travel. Shelton wants to deduct the maximum amount allowable for business use of his car. Shelton also purchased office equipment, computers and other five-year property for use in the business. He purchased 305,000 worth of such depreciable assets in March. He wants to deduct the maximum allowable under Code Sec. 179 and depreciate the remaining cost (if any) under the MACRS system Selling expenses include s 6,000 spent for meals and entertainment incurred on Shelton's sales calls during the year. Selling expenses a include 12,000 in illegal payments to city officials paid to secure lucrative contracts with the city. Shelton was uncomfortable making this payment, but reasoned that the contract was important to get his business off to a good start. Selling expenses also include gasoline, parking fees, and other documented auto expenses totaling s 2,500 attributable to Shelton's sales calls Assume that Shelton reports the revenue and expenses of Edmonds Accounting Services on Schedule C, that he uses the cash method of accounting, and that he lives at 3100 Cleburne, Houston, Tx 77004

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Only Tax Audit Guide Youll Ever Need

Authors: Janet M. Sydlaske, Richard K. Millcroft

1st Edition

ISBN: 0471510769, 978-0471510765

More Books

Students also viewed these Accounting questions