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If you can solve this problem it would be greatly appreciated! Many other Chegg answers to this question appear to be incorrect. 1:6-60 Dave Stevens,
If you can solve this problem it would be greatly appreciated! Many other Chegg answers to this question appear to be incorrect.
1:6-60 Dave Stevens, age 34, is a self-employed physical therapist. His wife Sarah, age 31, teaches English as a Second Language at a local language school. Dave's Social Security number is 111-11-1111. Sarah's Social Security number is 222-22-2222. Sarah and Dave have three childrenAndrew, age 8; Isaac, age 6; and Mira, age 3. The children's Social Security numbers are, respectively, 333-33-3333, 444-44-4444, and 555-55-5555. They live at 12637 Pheasant Run, West Bend, Oregon 74658. They paid $8,900 in qualified residence interest and $2,400 in property taxes on their home. They had cash charitable contributions of $14,000. They also paid $180 to a CPA for preparing their federal and state income tax returns for the prior year, $100 of which was for the preparation of Dave's Schedule C. Sarah and Dave earned interest on CDs of $3,200. Sarah's salary for the year is $32,000, from which $9,600 in federal income tax and $1,400 in state income tax were withheld. Dave's office is located at Suite 402, 942 Woodview Drive, Portland, Oregon 74624, and his employer ID number is 11-1111111. Dave has been practicing for four years, and he uses the cash method of accounting. During 2019, Dave recorded the following items of income: Revenue from patient visits $300,000 Interest earned on the office 225 checking balance The following expenses were recorded for the office: Property taxes $ 4,500 Mortgage interest 12,000 Depreciation 4,500 Malpractice insurance 37,500 Utilities 3,750 Office staff salaries 51,000 Rent payments on equipment 15,000 Office magazine subscriptions 150 Office supplies 24,000 Medical journals 330 Dave pays $50 annually for use of a safety deposit box to store certain confidential documents related to his business. In addition to his medical practice, Dave spends 15 hours every week managing his real estate investments. To make sure he is aware of all current investment strategies and best practices, he subscribes to the following journals: Wall Street Journal $150 U.S. News & World Report 55 Money Magazine 45 Dave also prepaid $33,000 in estimated federal income taxes. Prepare Dave and Sarah's 2019 tax return (Form 1040, Schedules 1, 2, 3, A, B, C, SE, and Form 8995). Disregard any tax credits for which they may be eligibleStep by Step Solution
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