Maria A. Solo (SSN 318-01-6921) lives at 190 Glenn Drive, Grand Rapids, Michigan 49527- 2005. Maria (age 45 and single) claims her aunt Selda Ray (SSN 282-61-4011) as a dependent. Selda lives with Maria. Maria owns and operates the Reliable Drug Store at 1816 First Street in Grand Rapids, Michigan 49503-1902, in which she materially participates the entire year. Her EIN is: 38-9654321 Employer quarterly payroll tax returns were filed as required, and Maria reports n the accrual method, but used the direct write-off method to compute bad debt expense. Her business code is 446110. She does not deduct expenses for an office in her home. An examination of Maria's business records reveals that the depreciable property includes furniture and fixtures, a delivery truck, and store equipment. The depreciation expense shown on the 2020 income statement meets the income tax requirements for depreciation for using the mentioned assets during 2020. Maria rounds calculations to the nearest dollar. Miscellaneous expenses include the following: Contributions to the Red Cross Chamber of Commerce Personal Electric Bill for August Total Miscellaneous Expenses: S 350 125 80 $ 555 a Maria also pays $4,500 in State Income Estimated Taxes for 2020; and, property taxes on her personal vehicles of $450; in addition to her personal mortgage interest of $7.000. Further, she has evidence of church contributions of $2,000 in the form of a letter from her church. Other income for Maria includes a salary of $100 each month for her services as a member of a working committee of the Drug Association. Her Form W-2 from the Association shows wages of $1,200 and federal income tax withheld of $296. Through her work as an employee of the Drug Association. Maria is able to purchase her own full year health insurance coverage for $500 per month. She also had $1,000 of out of pocket medical expenses. Thus, Maria is compliant with the ACA mandate. Maria also earned S320 in taxable interest. Maria made federal estimated tax payments totaling $5,000 during 2020. This amount is reported on Schedule 3 (Form 1040), and on line 18 of Form 1040 - Page 2 Maria has some rental property - her former personal residence. It was rented for the entire year to the same lessee; and, its address is 123 Liberty Street, Grand Rapids, Michigan 49503-1902 Maria should use Schedule E to report her Rental Income and Expenses. She has had the following transactions for the rental property Gross Rents: $12.000 ($1,000 per month Depreciation 3.000 Repairs 3.500 Sewer 600 Mortgage Interest 1,500 Insurance 550 Property Taxes 1.200 Maria also was invested in the stock market; and, she had some transactions for the tax period 2020. She would use Schedule D and Form 8949 to report her stock transactions. She had the following stock sales in 2020 - she did not buy any new stock for the year 2020. She sold 100 shares of Budweiser Stock for $125 per share on July 15, 2020 purchased on July 3, 2017 for $75 per share. She sold 100 shares of Proctor & Gamble Stock for $100 per share on July 15, 2020 purchased on July 25, 2019 for $75 per share. She also sold 100 shares of McDonalds Stock for $175 per share on July 18, 2020 purchased on August 15, 2017 for $120 per share. She also has a Long-Term Loss Carry Forward of $6,500. Please prepare 2020 tax form 1040 and its related schedules(schedules 1, 2, and 3) along with Schedules A. C, D, E, Form SE and Form 8949 for Maria Solo using the forms provided from the IRS website: WWW.IRS.GOV. Also, Maria does not want $3 to go to the Presidential Election Campaign fund. She signs the return on April 15.2021. RELIABLE DRUG STORE Income Statement For the Year Ended December 31, 2020 $324,200 13.390) $320,810 $ 68,920 $198.240 (8.100 5190.140 $259,060 (69.185) Operating revenue Sales Less sales returns and allowances Net sales Cost of merchandise sold Merchandise inventory, beginning Purchases Less purchases returns and allowances Net purchases Merchandise available for sale Less merchandise inventory, ending Cos of merchandise sold Gross profit on sales Operating expenses Advertising expense Bad debt experie (direct write off method) Car and truck expense Depreciation expense Insurance expense (ocher than health) Miscellancous expense Payroll taxes Rent expense other business property) Telephone and utilities expense Travel expense Meals espente Wages expense Total operating expenses 7189.875) $130,935 $ 6,561 850 7,967 3.396 614 125 3,471 12,000 2.395 256 70 62,500 (100.215 Net income $ 30,720 Maria drove her personal automobile for 34,619 businen miles during the year. Tonals for the are 32.815. There were 300 computing mile. Thuss Marie only car. She has le written dog doctementing her besones mediet . Maria forat used the car in her business os May 2017. She set the standard lage mcha. Qualified Dividends and Capital Gain Tax Worksheet - Line 16 (Form 1040) Keep for your records) 2020 TID honum Before you begin: See the earlier instructions for ine 16 to see you can use this worksheet to oure your tax Before completing this worksheet complete Form 1040 or 1040-SR through line 15 - If you don't have to file Schedule and you received capital gain distribution, be sure you checked the box on Form 1040 or 104-SR, line 1. 2. 7 TO. 11. 12 1. Enter the amount from Form 1046 or 1040-SR line 15. However, you are fing Form 2555 relating to foreign earned home), enter the amount from line 3 of the Foreign Eamed Income Tax Worksheet 2 Enter the amount from Form 1040 1040-SR.In 36 3. Are you fing Schedule Yes. Enter the smaller of line 15 or 15 of Schedule If her line 15 or 16 is blank oor No. Enter the amount from Form 1040 or 1040-SR, line 7 & Addnes 2 and 3. 6 Subtract line 4 from line 1 more or lessenter 6. Enter $40,000 single of married fling separately 500.000 married ning jointly or qualifying widower) $53,600 head of household 7. Emer the water of ine 1 or line 6 Enter the maler of line 5 orine 7 9. Subtract line from line 7. This amount is taxed at 0% 10. Enter the sale of line 11. Enter the amount from ine 9 12. Subtract line 11 from line 10 13. Enter 5441.450 i sing 1248,300f married in partly 5406.600 mantieding jointly orgullying widow S49.000 ad of household 14. Enter the matter of line 13 11 Add lines and 10 Subtractie 15 from line 14. Feroor enter- 17. Enter the smaller of line 12 or line 16 18. Mitely line 17 y 15% (0.15) 19. Add Ines and 17 20. Subtractie 19 from ine 10 21. Multiply in 20 by 20% (0.20) 22. Figure the tax on the amount on line 5. If the amount on ne less than 100.000 the Tax Table to our txt the amount online $100.000 or more the Tax Computation Worksheet 21 Addes 18. 21, and 22 24 Figure the the amount of the amount online is less than 5100,000, the Tax o ligure that if the amount on line 15100 000 or more the Tax Computation Worksheet 25. Taxonal taxable income Enter the smaller one 23 24. Also include the amount on the entry om 1040 1040 SR 10 yourling Fom 2555 dont the amount on the y ace on Form 1040 or 1040-SR, in to dentro line of the Foreign Eamed Income Tax Woohool 13 10 15. 16 17 18 19 21 22 23 you are on For 2585 the bone in the Foreign Earned Income Tax watercoghi