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 elec

trical lighting retail store, Brite-On. Brite-On had the following, assets on January 1, 2019:

Assets

Old store building purchased April 1, 2004

Equipment (7-year recovery) purchased January 10, 2014

Inventory valued using FIFO method: 4,000 light bulbs

Cost

$100,000

30,000

SS/bulb

Brite-On purchased a competitor's store on March 1, 2019, for $206,000. The purchase

price included the following:

New store building

Land

Equipment (5-year recovery)

Inventory: 3,000 light bulbs

$115,000 (FMV)

28.000 (EMV)

45,000 (FMV)

$ 6/bulb (cost)

On june 30, 2019, Brite-On sold the 7-year recovery period equipment for $12,000

Brite-On leased a car for $860/mouth beginning on June 1, 2019. 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 $1S/bulb during the year. Also, Brite-On

expenses:

Service revenues

Interest expense on business loans

Auto expenses (gas, oil, etc.)

Taxes and licenses

Utilities

Salaries

$94.000

6.000

4,800

3,300

2,800

36,000

Ellen receives $42,000 of wages from employment elsewhere, from which $4,000 of fed-

the store while Ellen spends no time at the store.

dditional Facts:

Equipment acquired in 2014: The Brites elected out of bonus depreciation and did no

elect Sec. 179.

quipment acquired in 2019: The Brites elected Sec. 179 to expense the cost of th

-year equipment.

Assume that the lease inclusion rules require that Brite-On reduce its annual deduct

ible lease expense by $41.

Compute the Brite's taxable income and balance due or refund for 2019.

Refer to the facts in Problem I:10-47 for John and Ellen Brite. The following information

is also available for them:

John and Ellen 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 started using his automobile in his business on July 1, 2012. During 2019, it was used 7,000 miles for John's business, 1,800 miles for commuting, and 6,500 miles for other reasons. The automobile and Ellen's automobile were available for personal use and during off-duty hours. John has written evidence to support his deduction for automobile expenses.

Complete the Brites' 2019 Form 1040, Schedules 1, 2, 3, C, and SB, and Forms 4562 and 4797.

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. John and Fillen 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