hirthdate February 2, 1967) and Linda (birthdate August 30, 1972) Long have the following information regarding their income and expenses for the r Russell owns and operates a landscaping business called Lawns and current year Tolimited. The business is operated out of their home, located at 1234 you ampa, ID 83687. The principal business code is 561730. Russell's book- Cherry Lane, Cherry oded the following income statement from the landscaping business: 12/31/2018 Current Period 1/1/2013 to 12/31/2018 1/1/2017 to 12/31/2017 Lawn and plant installation TOTAL REVENUES COST OF SERVCES 71,998.00 48,576.00 8,001.00 128,575.00 17,097.00 83,412.00 6,673.00 78,445.00 Payroll Taxes Equipment Rental Maintenance (Equipment) Special Clothing and Safety Shoes Contract Labor 10,65100 8435.00 7.780.00 119,441.00 6,790.00 110,953.00 TOTAL COST OF SERVICES GROSS PROFIT (LOSS) OPERATING EXPENSES 14,569.00 17,622 00 Advertising and Promotion 500.00 870.00 2,100.00 4,000.00 2,300.00 120.00 790.00 2,015.00 1,975.00 865.00 1,780.00 15,945.00 Business Meals 600.00 Business Gifts Telephone 750.00 724.00 10,320.00 Other TOTAL OPERATING EXPENSES NET INCOME (LOSS) (1,376 7.302.00 The bookkeeper provided the following additional information: Donations expense is a $600 donation to the Campaign to Re-Elect Senator Ami Dahla. . Training includes $575 for an educational seminar on bug control. It also in- cludes the cost for Russell to attend an online certificate program in landscaping in order to improve his skills and advertise his designation as a certified land- scaper. The tuition, fees, and books cost $1,400. He also drove his personal car 57 miles round trip to Boise to take exams three times for a total of 171 miles. No business gift exceeded $22 in value. The business uses the cash method of accounting and has no accounts receivable or inventory held for resale. In addition to the above expenses, the Longs have set aside one room of their house as a home office.The room is 200 square feet and their house has a total of 1,600 square feet. They pay $12,600 per vear rental on their house, and the utilities amount to $3,000 for the year. Th e Longs also have the following interest income for the year: Interest from Idaho Bank and Trust bond portfolio $4 The Longs have two dependent children, Bill Social Securi 2,810 and Martha (Social Security number 345-67-8654). Both Bil high school students, ages 17 and 18, respectively. Russell's Social Se and Martha are full-time ey made an estimated tax payment to the IRS 664.98-5678 and Linda's is 554-98-3946. They made an estimated tax of $2,500 on December 31, 2018. Required: Complete the Longs fed depreciation) eral tax return for 2018 on Form 1040, Schedtule 1 dule 5, Schedule B, Schedule C, and Form 8829. Do not complete Form 456
