I couldnt figure out the answer for Schedule 4562 line 14, 17, 22.
How can I solve these problems? Could you please help?
Thank you.
InstructionsSchedule of Fixed Asset Rollforward Schedule C Form 4562 Instructions Comprehensive Problem 8-1 Sherry Hopson owns a retail family clothing store. Her store is located at 4321 Heather Drive, Henderson, NV 89002. Her employer identification number is 95-1234321 and her Social Security number is 123-45-6789. Sherry keeps her books on an accrual basis. The income and expenses for the year are: Gross sales $351,700 Returns and allowances 4,000 Expenses Beginning inventory (at cost) Add: purchases Cost of goods available for sale Less: ending inventory (at cost) Cost of goods sold Rent Insurance Legal and accounting fees Payroll Payroll taxes Utilities Office supplies Advertising $84,300 100,700 185,000 75,000 $110,000 23,800 1,500 2,800 37,200 3,440 1,850 750 2,100 Sherry's bookkeeper has provided the book-basis fixed asset roll forward to be used in computing the depreciation. The tax lives of the assets are the same as the book lives shown in the fixed asset schedule. The truck is not considered a passenger automobile for purposes of the luxury automobile limitations. No Section 179 election is made. For tax purposes, Sherry elected out of bonus depreciation in all years except are the same as the book lives shown in the fixed asset schedule. The truck is not considered a passenger automobile for purposes of the luxury automobile limitations. No Section 179 election is made. For tax purposes, Sherry elected out of bonus depreciation in all years except 2018 Required Complete Sherry's Schedule C and Form 4562. Make realistic assumptions about any missing data. Enter all amounts as positive numbers. .If an amount box does not require an entry or the answer is zero, enter "O". If required round any dollar amount to the nearest dollar Schedule of Fixed Asset Rollforward Sherry's bookkeeper has provided the following book-basis fixed asset rollforward Hopson Retail Fixed Asset Rollforward 12/31/2018 (book basis) 2017 DEPR COST 2016 DEPR 1,796.67 1,960.00 1,960.00 1,796.67 1,960.00 1,960.00 2018 ACCUM DEPR 5,716.67 5,716.67 NET BOOK ASSET IN SERVICE METHOD LIFE BASIS DEPR DEPR VALUE 4,083.33 4,083.33 2/15/2016 SL 9,800.00 CASH REGISTER 2016 TOTAL ADDITIONS 9,800.00 10/12/2017 SL 4,500.00 73,600.00 8,100.00 17,900.00 RETAIL FIXTURES FURNITURE 2017 TOTAL ADDITIONS TOTAL 642.86 128.57 514.29 289.28 1,157.15 1,796.67 2,249.28 3,117.15 160.71 803.57 642.86 1,446.43 7,163.10 3,696.43 2,957.14 6,653.57 10,736.90 10/12/2017 SL 5 32,000.00 717,000.00 3,500.00 28,266.67 15,583.33 3,091.67 6/1/2018 SL 6/1/2018 SL 6/1/2018 SL 3,733.33 1,416.67 408.33 3,733.33 1,416.67 408.33 DELIVERY TRUCK DESK AND CABINETRY 6/1/2018 SL 6/1/2018 SL 6/1/2018 SL 5 32,000.00 17,000.00 5 3,500.00 52,500.00 70,400.00 3,733.33 1,416.67 408.33 -5,558.33 1,796.67 2,249.28 8,675.48 DELIVERY TRUCK DESK AND CABINETRY COMPUTER 2018 TOTAL ADDITIONS TOTAL 3,733.33 1,416.67 408.33 5,558.33 12,721.43 28,266.67 15,583.33 3,091.67 46,941.67 57,678.57 Schedule C Complete Sherry's Schedule C SCHEDULE C (Form 1040) Department of the Treasury Internal Revenue Service (99) Name of proprietor Sherry Hopson A Principal business or profession, including product or service (see instructions) OMB No. 1545-0074 Profit or Loss From Business 2018 (Sole Proprietorship) Go to www.irs.gov/ScheduleC for instructions and the latest information. Attach to Form 1040, 1040NR, or 1041; partnerships generally must file Form 1065 Attachment Sequence No. 09 Social security number (SSN) 123-45-6789 B Enter code from instructions Retail Clothing Store Business name. If no separate business name, leave blank. Hopson Retail 448140 D Employer ID number (EIN), (see instr.) C 951-23-4321 E Business address (indluding suite or room no.) 4321 Heather Drive City, town or post office, state, and ZIP code Accounting method: (1)0 Cash (2)Accrual (3)DOther (specify) Did you "materially participate" in the operation of this business during 2018? If "No," see instructions for limit Henderson, NV 89002 F G 2 Yes O No H If you started or acquired this business during 2018, check here..._.. . . .. .. . .. . . _. . .. . . IDid you make any payments in 2018 that would require you to file Form(s) 1099? (see instructions) Yes No Form 4562 Complete Sherry's Form 4562 (page one) Click here to access depreciation table 8-2 and here for depreciation table 8-4 OMB No. 1545-0172 Form 4562 Department of thee Treasury Internal Revenue Service (99) Depreciation and Amortization (Including Information on Listed Property) 2018 Attachment Attach to your tax return. Go to www.irs.gov/Form4562 for instructions and the latest information. Business or activity to which this form relates Sequence No. 179 Name(s) shown on return Sherry Hopson Identifying number Retail clothing store 123-45-6789 Election To Expense Certain Property Under Section 179 Part I Note: If you have any listed property, complete Part V before you complete Part I 2 Total cost of section 179 property placed in service (see instructions) . . . . . . . . . . . . . .. . . . . . . . . . .. 3 Threshold cost of section 179 property before reduction in limitation (see instructions) . . . . . . . . . . . . . . . 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- .. . . . .. . . . .. . . .. . . . . . . . 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing separately, see 2 3 4 5 (a) Description of property (b) Cost (business use only) (c) Elected cost 6 7 Listed property. Enter the amount from line 29. .. . . . . . . . . . . . . . . 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7.. . . . . . . . . . . . . . . . 9 Tentative deduction. Enter the smaller of line 5 or line 8.. . . . . . . . .. . . . . . . . . . . . _ . . . . . . 7 8 9 10 Carryover of disallowed deduction from line 13 of your 2017 Form 4562. . .. . . . . . . . . . . . . 10 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5. See instructions 11 12 Section 179 expense deduction. Add lines 9 and 10, but don't enter more than line 11. . . . . 12 . . .. . 12 Section 179 expense deduction. Add lines 9 and 10, but don't enter more than line 11. . . . . . . . . .. . . . . . . 12 13 Carryover of disallowed deduction to 2019. Add lines 9 and 10, less line 12 13 Note: Don't use Part II or Part III below for listed property. Instead, use Part Special Depreciation Allowance and Other Depreciation (Don't include listed property. See instructions.) Part II 14 Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year, see instructions-............................................................. 14 15 16 15 Property subject to section 168(f)(1) election . . . . . . . . _ . . . . . . . . .. . . . . . . . . . . . . .. . . . . . . . MACRS Depreciation (Don't include listed property. See instructions.) Part III Section A 17 MACRS deductions for assets placed in service in tax years beginning before 2018. . . .. . . . . . . . 17 18 If you are electing to group any assets placed in service during the tax year into one or more general asset Section B-Assets Placed in Service During 2018 Tax Year Using the General Depreciation System (c) Basis for depreciation (b) Month and year placed in (business/investment (a) Classification of property (d) Recovery period (g) Depreciation deduction (e) Convention(f) Method use only-see instructions) service 19a 3-year property b 5-year property c 7-year property d 10-year property e 15-year property f 20-year property g 25-year property h Residential rental 25 yrs S/L 27.5 yrs S/L property 27.5 yrs 27.5 yrs 39 yrs h Residential rental S/L S/L S/L S/L property iNonresidential real property Section C-Assets Placed in Service During 2018 Tax Year Using the Alternative Depreciation System 20a Class life b 12-year 30-year d 40-year S/L S/L S/L S/L 12 yrs 30 yrs 40 yrs Summary (See instructions.) Part IV 21 Listed property. Enter amount from line 28. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . 22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter here and 21 on the appropriate lines of your return. Partnerships and S corporations-see instructions . . . . . . . . . . . .. . 23 For assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A costs. . _ . . . . . . . . . .. . . . . . . . . . . 23 For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 12906N Form 4562 (2018) InstructionsSchedule of Fixed Asset Rollforward Schedule C Form 4562 Instructions Comprehensive Problem 8-1 Sherry Hopson owns a retail family clothing store. Her store is located at 4321 Heather Drive, Henderson, NV 89002. Her employer identification number is 95-1234321 and her Social Security number is 123-45-6789. Sherry keeps her books on an accrual basis. The income and expenses for the year are: Gross sales $351,700 Returns and allowances 4,000 Expenses Beginning inventory (at cost) Add: purchases Cost of goods available for sale Less: ending inventory (at cost) Cost of goods sold Rent Insurance Legal and accounting fees Payroll Payroll taxes Utilities Office supplies Advertising $84,300 100,700 185,000 75,000 $110,000 23,800 1,500 2,800 37,200 3,440 1,850 750 2,100 Sherry's bookkeeper has provided the book-basis fixed asset roll forward to be used in computing the depreciation. The tax lives of the assets are the same as the book lives shown in the fixed asset schedule. The truck is not considered a passenger automobile for purposes of the luxury automobile limitations. No Section 179 election is made. For tax purposes, Sherry elected out of bonus depreciation in all years except are the same as the book lives shown in the fixed asset schedule. The truck is not considered a passenger automobile for purposes of the luxury automobile limitations. No Section 179 election is made. For tax purposes, Sherry elected out of bonus depreciation in all years except 2018 Required Complete Sherry's Schedule C and Form 4562. Make realistic assumptions about any missing data. Enter all amounts as positive numbers. .If an amount box does not require an entry or the answer is zero, enter "O". If required round any dollar amount to the nearest dollar Schedule of Fixed Asset Rollforward Sherry's bookkeeper has provided the following book-basis fixed asset rollforward Hopson Retail Fixed Asset Rollforward 12/31/2018 (book basis) 2017 DEPR COST 2016 DEPR 1,796.67 1,960.00 1,960.00 1,796.67 1,960.00 1,960.00 2018 ACCUM DEPR 5,716.67 5,716.67 NET BOOK ASSET IN SERVICE METHOD LIFE BASIS DEPR DEPR VALUE 4,083.33 4,083.33 2/15/2016 SL 9,800.00 CASH REGISTER 2016 TOTAL ADDITIONS 9,800.00 10/12/2017 SL 4,500.00 73,600.00 8,100.00 17,900.00 RETAIL FIXTURES FURNITURE 2017 TOTAL ADDITIONS TOTAL 642.86 128.57 514.29 289.28 1,157.15 1,796.67 2,249.28 3,117.15 160.71 803.57 642.86 1,446.43 7,163.10 3,696.43 2,957.14 6,653.57 10,736.90 10/12/2017 SL 5 32,000.00 717,000.00 3,500.00 28,266.67 15,583.33 3,091.67 6/1/2018 SL 6/1/2018 SL 6/1/2018 SL 3,733.33 1,416.67 408.33 3,733.33 1,416.67 408.33 DELIVERY TRUCK DESK AND CABINETRY 6/1/2018 SL 6/1/2018 SL 6/1/2018 SL 5 32,000.00 17,000.00 5 3,500.00 52,500.00 70,400.00 3,733.33 1,416.67 408.33 -5,558.33 1,796.67 2,249.28 8,675.48 DELIVERY TRUCK DESK AND CABINETRY COMPUTER 2018 TOTAL ADDITIONS TOTAL 3,733.33 1,416.67 408.33 5,558.33 12,721.43 28,266.67 15,583.33 3,091.67 46,941.67 57,678.57 Schedule C Complete Sherry's Schedule C SCHEDULE C (Form 1040) Department of the Treasury Internal Revenue Service (99) Name of proprietor Sherry Hopson A Principal business or profession, including product or service (see instructions) OMB No. 1545-0074 Profit or Loss From Business 2018 (Sole Proprietorship) Go to www.irs.gov/ScheduleC for instructions and the latest information. Attach to Form 1040, 1040NR, or 1041; partnerships generally must file Form 1065 Attachment Sequence No. 09 Social security number (SSN) 123-45-6789 B Enter code from instructions Retail Clothing Store Business name. If no separate business name, leave blank. Hopson Retail 448140 D Employer ID number (EIN), (see instr.) C 951-23-4321 E Business address (indluding suite or room no.) 4321 Heather Drive City, town or post office, state, and ZIP code Accounting method: (1)0 Cash (2)Accrual (3)DOther (specify) Did you "materially participate" in the operation of this business during 2018? If "No," see instructions for limit Henderson, NV 89002 F G 2 Yes O No H If you started or acquired this business during 2018, check here..._.. . . .. .. . .. . . _. . .. . . IDid you make any payments in 2018 that would require you to file Form(s) 1099? (see instructions) Yes No Form 4562 Complete Sherry's Form 4562 (page one) Click here to access depreciation table 8-2 and here for depreciation table 8-4 OMB No. 1545-0172 Form 4562 Department of thee Treasury Internal Revenue Service (99) Depreciation and Amortization (Including Information on Listed Property) 2018 Attachment Attach to your tax return. Go to www.irs.gov/Form4562 for instructions and the latest information. Business or activity to which this form relates Sequence No. 179 Name(s) shown on return Sherry Hopson Identifying number Retail clothing store 123-45-6789 Election To Expense Certain Property Under Section 179 Part I Note: If you have any listed property, complete Part V before you complete Part I 2 Total cost of section 179 property placed in service (see instructions) . . . . . . . . . . . . . .. . . . . . . . . . .. 3 Threshold cost of section 179 property before reduction in limitation (see instructions) . . . . . . . . . . . . . . . 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- .. . . . .. . . . .. . . .. . . . . . . . 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing separately, see 2 3 4 5 (a) Description of property (b) Cost (business use only) (c) Elected cost 6 7 Listed property. Enter the amount from line 29. .. . . . . . . . . . . . . . . 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7.. . . . . . . . . . . . . . . . 9 Tentative deduction. Enter the smaller of line 5 or line 8.. . . . . . . . .. . . . . . . . . . . . _ . . . . . . 7 8 9 10 Carryover of disallowed deduction from line 13 of your 2017 Form 4562. . .. . . . . . . . . . . . . 10 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5. See instructions 11 12 Section 179 expense deduction. Add lines 9 and 10, but don't enter more than line 11. . . . . 12 . . .. . 12 Section 179 expense deduction. Add lines 9 and 10, but don't enter more than line 11. . . . . . . . . .. . . . . . . 12 13 Carryover of disallowed deduction to 2019. Add lines 9 and 10, less line 12 13 Note: Don't use Part II or Part III below for listed property. Instead, use Part Special Depreciation Allowance and Other Depreciation (Don't include listed property. See instructions.) Part II 14 Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year, see instructions-............................................................. 14 15 16 15 Property subject to section 168(f)(1) election . . . . . . . . _ . . . . . . . . .. . . . . . . . . . . . . .. . . . . . . . MACRS Depreciation (Don't include listed property. See instructions.) Part III Section A 17 MACRS deductions for assets placed in service in tax years beginning before 2018. . . .. . . . . . . . 17 18 If you are electing to group any assets placed in service during the tax year into one or more general asset Section B-Assets Placed in Service During 2018 Tax Year Using the General Depreciation System (c) Basis for depreciation (b) Month and year placed in (business/investment (a) Classification of property (d) Recovery period (g) Depreciation deduction (e) Convention(f) Method use only-see instructions) service 19a 3-year property b 5-year property c 7-year property d 10-year property e 15-year property f 20-year property g 25-year property h Residential rental 25 yrs S/L 27.5 yrs S/L property 27.5 yrs 27.5 yrs 39 yrs h Residential rental S/L S/L S/L S/L property iNonresidential real property Section C-Assets Placed in Service During 2018 Tax Year Using the Alternative Depreciation System 20a Class life b 12-year 30-year d 40-year S/L S/L S/L S/L 12 yrs 30 yrs 40 yrs Summary (See instructions.) Part IV 21 Listed property. Enter amount from line 28. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . 22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter here and 21 on the appropriate lines of your return. Partnerships and S corporations-see instructions . . . . . . . . . . . .. . 23 For assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A costs. . _ . . . . . . . . . .. . . . . . . . . . . 23 For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 12906N Form 4562 (2018)
