INSTRUCTIONS : Complete FORM 1040, SCHEDULE 1, SCHEDULE B, SCHEDULE C and FORM 8829 with the information provided below. Assume the taxpayers had full-year health coverage and neither taxpayer wants to contribute to the presidential election campaign.

Russell (birthdate February 2, 1969) and Linda (birthdate August 30, 1974) Long have brought you the following information regarding their income and expenses for the current year. Russell owns and operates a landscaping business called Lawns and Landscapes Unlimited (EIN: 32-1456789). The business is operated out of their home, located at 1234 Cherry Lane, Nampa, ID 83687. The principal business code is 561730. Russell's bookkeeper provided the following income statement from the landscaping business:

Lawns and Landscapes Income Statement 12/31/2020

Current Period

Prior Period

1/1/2020 to 12/31/2020

1/1/2019 to 12/31/2019

REVENUES

Lawn maintenance

$82,350

$71,998

Lawn and plant installation

34,600

48,576

Other 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 includes 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 landscaper. 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 subscription is for a trade magazine titled Plants Unlimited.

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 160 square feet and their house has a total of 1,600 square feet. They pay $13,200 per year rental on their house, and the utilities amount to $1,800 for the year.

The Longs also have the following interest income for the year from corporate bonds:

Qualified dividends from Potato High Yield Dividend Mutual Fund

$44,500

The Longs have two dependent children, Bill (Social Security number 123-23-7654) and Martha (Social Security number 345-67-8654). Both Bill and Martha are full-time high school students, ages 17 and 18, respectively, and each can be claimed for the $500 other dependent credit. Russell's Social Security number is 664-98-5678 and Linda's is 554-98-3946. They made an estimated tax payment to the IRS of $300 on December 31, 2020. The Longs received a $2,400 EIP in 2020.

Required:

Complete FORM 1040, SCHEDULE 1, SCHEDULE B, SCHEDULE C and FORM 8829 with the information provided below. Assume the taxpayers had full-year health coverage and neither taxpayer wants to contribute to the presidential election campaign.

• Do not complete Form 4562 (depreciation). You may ignore any related self-employment taxes. Make realistic assumptions about any missing data.
• If required, enter a "loss" as a negative number on the tax form. Do not enter deductions or other amounts as negative numbers.
• If an amount box does not require an entry or the answer is zero, enter "0".
• Do not round any division. If required, round your final answers to the nearest dollar.

Instructions Form 1040 Schedule 1 Schedule Instructions Comprehensive Problem 3-ZA Russell (birthdate February 2, 1969) and Linde (birthdate August 30, 1974) Long have broug! and expenses for the current year. Russell owns and operates > Landscaping business called L The business is operated out of their home, located at 1234 Cherry Lane, Nampa. ID 83687. bookkeeper provided the following income statement from the landscaping business: Lawns and Landscapes Income Statement 12/31/2020 Current Period 1/1/2020 to 12/31/2020 $82,350 34,600 17.100 134,050 83.433 6,700 12.600 3.300 660 REVENUES Lawn maintenance Lawn and plant installation Other TOTAL REVENUES COST OF SERVICES Salaries Payroll Taxes Equipment Rental Maintenance (Equipment) Special Clothing and Safety Shoes Contract Labor TOTAL COST OF SERVICES GROSS PROFIT (LOSS) OPERATING EXPENSES Advertising and Promotion Donations Insurance Meals and Entertainment Subscriptions Business Gifts Telephone 7,780 119.473 14,577 1,500 600 4,000 2,300 120 790 2,015 1.975 Training Travel 865 1,700 Other TOTAL OPERATING EXPENSES 15,865 ($1,288) NET INCOME (LOSS) Instructionem 1000 Sche Instruction Sate August 30, 1974) Long have brought you the following information regarding the income perates a landscaping business called Law and Landscape (12-24967) 1234 Cherry Lane, lampa, ID 83687. The principat busness cate561720. Rus from the landscaping Dress wwns and Landscapes Income Statement 12/31/2020 Current Period 1/1/2020 to 12/31/2020 Prior Period 1/1/2019 to 12/31/2019 $82,350 34,600 17.100 134,050 571,95 48.575 8.000 128.575 1,633 12.6.00 30.651 3.435 200 6,790 110.959 7.70 1.500 700 600 500 4,000 2700 2.100 120 120 790 600 2,015 1.956 1.925 365 750 1.700 15,065 10:30 ($1,285 $7.102 ration: ampaign to Be Santo An Dan ar an bug control. It also includes the cost for alle attend an online capagan advertise a designation sciences. The tuition fees and book cost $1.400 Foto Boise to take exams three times for a total of 171 miles Hans Unlimited nas no accounts receiventory hele for wide one room of the home of the room 160 feet and the year rental on their house, and the voltes amount to $1.500 for the year the year from corporate bond Mutual Fund 100 ecurity number 123-23-7654) BASEBE The Longs also have the following interest income for the year from corporate bonds: Qualified dividends from Potato High Yield Dividend Mutual Fund $44,500 The Longs have two dependent children, Bill (Social Security number 123-23-7654) and Mart and Martha are full-time high school students, ages 17 and 18, respectively, and each can be Social Security number is 664-98-5678 and Linda's is 554-98-3946. They made an estimated 2020. The Longs received a $2,400 EIP in 2020. Instructions Form 1040 Schedule 1 Schedule Instructions Comprehensive Problem 3-ZA Russell (birthdate February 2, 1969) and Linde (birthdate August 30, 1974) Long have broug! and expenses for the current year. Russell owns and operates > Landscaping business called L The business is operated out of their home, located at 1234 Cherry Lane, Nampa. ID 83687. bookkeeper provided the following income statement from the landscaping business: Lawns and Landscapes Income Statement 12/31/2020 Current Period 1/1/2020 to 12/31/2020 $82,350 34,600 17.100 134,050 83.433 6,700 12.600 3.300 660 REVENUES Lawn maintenance Lawn and plant installation Other TOTAL REVENUES COST OF SERVICES Salaries Payroll Taxes Equipment Rental Maintenance (Equipment) Special Clothing and Safety Shoes Contract Labor TOTAL COST OF SERVICES GROSS PROFIT (LOSS) OPERATING EXPENSES Advertising and Promotion Donations Insurance Meals and Entertainment Subscriptions Business Gifts Telephone 7,780 119.473 14,577 1,500 600 4,000 2,300 120 790 2,015 1.975 Training Travel 865 1,700 Other TOTAL OPERATING EXPENSES 15,865 ($1,288) NET INCOME (LOSS) Instructionem 1000 Sche Instruction Sate August 30, 1974) Long have brought you the following information regarding the income perates a landscaping business called Law and Landscape (12-24967) 1234 Cherry Lane, lampa, ID 83687. The principat busness cate561720. Rus from the landscaping Dress wwns and Landscapes Income Statement 12/31/2020 Current Period 1/1/2020 to 12/31/2020 Prior Period 1/1/2019 to 12/31/2019 $82,350 34,600 17.100 134,050 571,95 48.575 8.000 128.575 1,633 12.6.00 30.651 3.435 200 6,790 110.959 7.70 1.500 700 600 500 4,000 2700 2.100 120 120 790 600 2,015 1.956 1.925 365 750 1.700 15,065 10:30 ($1,285 $7.102 ration: ampaign to Be Santo An Dan ar an bug control. It also includes the cost for alle attend an online capagan advertise a designation sciences. The tuition fees and book cost $1.400 Foto Boise to take exams three times for a total of 171 miles Hans Unlimited nas no accounts receiventory hele for wide one room of the home of the room 160 feet and the year rental on their house, and the voltes amount to $1.500 for the year the year from corporate bond Mutual Fund 100 ecurity number 123-23-7654) BASEBE The Longs also have the following interest income for the year from corporate bonds: Qualified dividends from Potato High Yield Dividend Mutual Fund $44,500 The Longs have two dependent children, Bill (Social Security number 123-23-7654) and Mart and Martha are full-time high school students, ages 17 and 18, respectively, and each can be Social Security number is 664-98-5678 and Linda's is 554-98-3946. They made an estimated 2020. The Longs received a $2,400 EIP in 2020