HI I have to do a project. With the information given i have to prepare the right tax form. David R. and Sheri N. Johnson (ages 45 and 46) are married and live at 641 Cody Way, Casper, WY 82609. David is a consulting engineer, while Sheri is a paralegal. They file a joint return and use the cash basis for tax purposes. 1. Trained as a mining engineer, David has developed considerable expertise in the treatment and disposition of waste material. He also is well versed in the federal and state requirements for land reclamation projects. David maintains a consulting practice through which he advises clients on these matters. David's business activity code is 541990. Most of his clients are small and medium-size mine owner/operators located in Wyoming and contiguous states (e.g., Montana, Idaho, Utah). Usually, David is retained by a client on a contract-fee basis and is reimbursed for all out-of-pocket expenses. In performing his services, David usually visits the job site and later submits his recommendations in a written report along with a statement for his services and expenses. David received the following amounts from his consulting business in 2012: Fees for services rendered $ 92,800 Expense reimbursements: Airfare $8,200 Meals 6,100 Lodging 5,200 Transportation (taxis, airport limos, car rentals) 920 Subtotal for expense reimbursement 20,420 Total received $113,220 Besides the items already mentioned, the Johnsons had the following receipts during 2012: Interest income City of Cheyenne general purpose bonds $1,900 CD at Wells Fargo Bank 1,100 Money market account at Bank of America 400 Yard (garage) sale 950 Qualified dividends on Meadowlark Corporation common stock 700 Jury duty fees 420 The yard sale involved used furniture, appliances, books, toys, and other household goods, having an estimated original cost value of $1,800. In connection with her jury duty assignment in June, Sheri drove the Suburban 40 miles and incurred expenses of $30 for parking and $45 for meals In addition to the items already noted, the Johnsons had the following expenditures for 2012: Interest on home equity loan used to finance the purchase of personal items (e.g., camper) $4,400 Charitable contributions (not including Vivian's pledge) 3,200 Ad valorem property taxes on personal residence 3,100 Medical and dental bills (including prescription drugs of $400) other than those relating to Vivian (see item 13) 1,800 The Johnsons drove the Suburban 420 miles to various medical and dental appointments. Wyoming has no state or local income tax but does impose a general sales tax. The county in which they live imposes an additional local sales tax of 1%. Although they do not keep track of their sales taxes, they purchased a camper for $40,000 in May 2012. The sales tax on this purchase was $1,600