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John and Ellen Brite are married, file a joint return, and are less than 65 years old. They have no dependents and claim the standard

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John and Ellen Brite are married, file a joint return, and are less than 65 years old. They have no dependents and claim the standard deduction. John owns an unincorporated specialty electrical lighting retail store, Brite-On. Brite-On had the following assets on January 1, 2020: Brite-On purchased a competitor's store on March 1, 2020, for $206,000. The purchase price included the following: On June 30, 2020, Brite-On sold the 7-year recovery period equipment for $12,000. Brite-On leased a car for $860 /month beginning on June 1,2020 . The car is used 100% for business and was driven 14,000 miles during the year. Brite-On sold 8,000 light bulbs at a price of $15/bulb during the year Also, Brite-On made additional purchases of 4,000 light bulbs in August 2020 at a cost of $7/ bulb. Brite-On had the following revenues (in addition to the sales of light bulbs) and additional expenses: Ellen receives $42,000 of wages from employment elsewhere, from which $4,000 of federal income taxes were withheld. Joh and lillen made four $3,100 quarterly estimated tax payments. For self-employment tax purposes, assume lohn spent 100% of his time at the store while Ellen spends no time at the store. Refer to the facts in Problem I:10-47 for John and Ellen Brite. The following information is also available for them: - John (SSN 123-45-6789) and Ellen (SSN 234-56-7890) live at 111 Maple Street, Johnsonville, Colorado 81733. - Brite-On is located at 3900 Market Street, Johnsonville, Colorado 81733. Its employer identification number is 44-1357924. - The business uses the accrual method and did not make any payments that would require Form 1099 to be filed. It has used the cost method to value inventory for many years. - John and Ellen do not have any transactions involving virtual currency. Complete the Brites' 2020 Form 1040, Schedules 1, 2, C, and SE, and Forms 4562, 4797, and 8995

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