Husband: Harvey Johnson $($SSN $001-112-0202)($DOB: $1/01/54)$

Wife: Cindy Johnson $($SSN $010-003-1100)($DOB: $2/28/60)$

Home Address: $500$ Sea World Dr$.,$ San Diego, California $92109$

One child: Okra Smith $($SSN $090-887-0099)($DOB: $3/20/05)$

Parent: Penny Manta $($SSN $331-555-9607)($DOB: $10/15/39)$

$1.$ Cindy Johnson earned gross wages of $$70000$ from the Whaley House Musuem. Her $2023$ Form W$-2$ shows that $$8000$ from her paycheck has been withheld for payment of federal income taxes.

$2.$ Harvey Johnson received Social Security benefits of $$17000$ in $2023.$

$3.$ Harvey Johnson owns a steakhouse business in San Diego called Grillmaster$$s Haven. It is a sole proprietorship located at $9455$ Clairemont Mesa Blvd$,$ San Diego, CA $92123.$ Its income statement $($for financial statement purposes$)$ for the year ending December $31,2023,$ shows the following:

Gross Sales $ $340,000$

Less: Cost of Goods Sold $(200,000)$

Gross Profit $160,000$

Depreciation Expense $($for tax purposes$)(13,000)$

Insurance Expense $(3,000)$

Office Expense $(5,000)$

Payroll Tax Expense $(11,000)$

Utilities Expense $(3,000)$

Salaries and Wages Expense $(91,000)$

Telephone Expense $(2,000)$

Total Expenses $ $128,000$

Net Income$/($Loss$)$ $ $32,000$

Additionally, Harvey Johnson paid these automobile$-$related expenses on a delivery van:

Gas $2,000$

Insurance $2,000$

Maintenece and Repairs $900$

Total Automobile Expenses $ $4,900$

He drove $12,000$ miles on the delivery van in $2023,$ of which $2,500$ were for personal purposes.

He incurred self$-$employment taxes of $$5,000.$ One$-$half of this amount should be properly claimed as an adjustment to income.

$4.$ Interest income consists of the following:

Citibank $$50$

Union Bank $$20$

$5.$ Dividend income consists of the following:

Fidelity Investments $($qualified$,$ $$8,000)$ $ $9,000$

Merrill Lynch $($qualified$,$ $$1,200)$ $ $1,800$

$6.$ The Johnsons own a commercial building at $7001$st Ave., San Diego, CA $92101.$ They purchased this building on January $1,2019,$ for $$400,000.$

On January $1,2023,$ they converted it to a rental property, and rented it to May Flower $($so that she could open Diego$$s Flower shop, Flower May$).$ In $2023,$ its rental report showed the following:

Rental income $ $33,000$

Property tax expense $(4,000)$

Repairs expense $(1,000)$

Interest expense $($mortgage$)(5,000)$

Depreciation expense $($for tax purposes$)(8,000)$

Total Expenses $ $18,000$

Net Income $ $15,000$

$7.$ The Johnsons also had invested in several flow$-$through entities. In $2023,$ the results from these flow$-$through entities were as follows:

The Resolution Co$.$ $ $4,000$

NextStep Solutions $($$ $3,000)$

$8.$ In $2006,$ Harvey Johnson purchased an annuity from Fidelity Life for $$246,000$ with monthly payments of $$1,200$ on the annuity starting on May $1,2023,$ and will continue for a total of $20$ years.

$9.$ The Johnsons made the following stock sales:

Shares$/$Stock Name Purchase Date Sale Date Sales Price Purchase Price

$100$ shares of Tesla Corp. $3/9/20185/28/2023$ $$10,0005,00$

$250$ shares of Walmart Co$.5/15/202311/21/20238,0009,000$

$110$ shares of Apple Co$.3/21/20238/7/20235,0006,000$

$600$ shares of Nvidia Corp. $1/19/202110/19/202312,0008,500$

The Johnsons had a net long$-$term carryforward loss from $2022$ of $$10,000.$

$10.$ In Las Vegas, Cindy Johnson was playing the slot machines. After putting in $$30,$ she hit the jackpot and won $$1,500.$

$11.$ The Johnsons purchased a vacation condominium at $300$ Biscayne Blvd$,$ Miami, FL $33131,$ on January $1,2023$ for $$1,000,000.$ It was used personally except in the months of May through December $2023,$ when it was rented out. They reported the following:

Rental income $ $80,000$

Interest expense $(18,000)$

Repairs expense $(3,000)$

Property tax expense $(11,000)$

Homeowners$$ association dues $(7,000)$

Depreciation expense $($for tax purposes$)(20,000)$

Total Expenses $ $59,000$

Net Income $ $21,000$

Using the information provided calculate and fill out the first page of Form $1040$ and Schedule $1.$ Show calculations