L. The Holmans paid the following child care expenses during 2016: 1. Kindergarten Daycare School ..$2,800 1177 Valley View Dallas, Texas 75210 EIN:74-0186254 2.Happy Trails Day Center ..2,200 3692 Airport Blvd. Los Angeles, California 90034 EIN:78-0593676 Of the $5,000 total child care expenses, $3,000 was for Karen, and the remaining $2,000 was for Richard.

You should assume that the amounts of child care expenses paid to Kindergarten Day Care School and Happy Trails Day Center provided by the Problem each consisted of amounts paid for each child correlating to the proportion of the total amount paid for that child to the total amount paid for both children. Thus, the specific amounts were as follows:

Richard Karen Total Kindergarten Day Care School $ 1,120 (40%) + $ 1,680 (60%) = $ 2,800 Happy Trails Day Center 880 (40%) + 1,320 (60%) = 2,200 Total 2,000 (40%) + 3,000 (60%) = 5,000 1. As directed by the Problem, prepare the Holmans Federal income tax return for 2016. As indicated by the problem, if they have a refund, they would prefer to have it credited (i.e.,applied) against their 2017 taxes (presumably because they are expecting to have a requiredestimated tax payment obligation related to Davids self-employment income).