Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Janice Morgan, age 24, is sinale and has no dependents. She is a freelance writer, In January 2018, Janice opened her own office located at

image text in transcribed
Janice Morgan, age 24, is sinale and has no dependents. She is a freelance writer, In January 2018, Janice opened her own office located at 2751 Waldham Road, Pleasant Hill, NM 88135. She called her business Writers Anonymous, Business Code for box B is 611000, Janice is a cash basis taxpayer. She lives at 132 Stone Avenue. Pleasant Hill, NM 8A135. Her Social Security number is 123-456789. Janice's parents continue to provide health insurance for her under their policy. Janice wants to contribute to the Presidential Election Campaign Fund. During 2018, Janice reported the following income and expense items connected with her business. Income from sale of articles Rent Utilities Supplies Insurance Travel (including meals of $1,200) $85,000 16,500 7,900 1,800 5,000 3,500 Janice purchased and placed in service the following fixed assets for her business. Janice wants to elect immediate expensing under $ 179, if possible. Furniture and fixtures (new) costing $21,000 on January 10. Computer equipment (new) costing $12,400 on July 28. Janice's itemized deductions include: State income tax Home mortgage interest paid to First National Bank Property taxes on home Charitable contribution to her alma mater, State College $2,950 6,000 2,500 1,200 Janice did not keep a record of the sales tax she paid. The amount from the sales tax table is ta Janice reports interest income of $4,000 on certificates or deposit at Second National Bank. She made estimated tax payments of $3,000 for 2018. Required: Compute Janice Morgan's 2018 Federal income tax payable (or refund due). Use Form 1040, Schedules 1, 4 and 5, Schedules A,B,C, SE and Form 4562. Other Notes/Requirements: Don't forget to put taxpayer's name and SS# at top of each page/form. Show ALL work on a separate worksheet. If you don't use a number provided in the problem, include an explanation as to why you didn't use it

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Accounting

Authors: Robert N. Anthony, Leslie Pearlman Breitner

9th Edition

013149693X, 9780131496934

More Books

Students also viewed these Accounting questions

Question

What is the central issue of the situation facing the organization?

Answered: 1 week ago