Moduel 1: 78. Kimberly Cerny is a graduate student. She is 22 years old and works part-time as a

graduate assistant in the biology department. In the summer, Kimberly was an intern

at Neutrobio, Inc. Details regarding her salary and withholdings from her

employment follow.

Biology

Department Neutrobio, Inc.

Salary $2,600 $3,600

Federal withholding 260 302

State withholding 97 114

Social Security 168 275

Kimberly also received $1,200 in interest from a savings account that was set up by

her grandparents to help pay her college expenses. Kimberly lives at 499 Hillside

Drive, Portland, Oregon, 97208. She is a dependent of her parents, her Social Security

number is 324-99-8020, and she does not wish to contribute to the Presidential

Campaign Election Fund. She has asked you to help her with her federal

income tax return. Prepare Form 1040EZ for Kimberly. Forms and instructions

can be downloaded from the IRS Web site (www.irs.gov).

Moduel 2: 104. Marvin and Tracy Peerys 2012 taxable income is $87,830 before considering the

effect of their investment activities. Details of their 2012 sales of investment assets

follow:

Security Sale Purchase Sales Commissions Basis

Date Date Price Paid

Jobe Tool Inc. 02/19/12 11/15/11 $14,500 $400 $11,000

Gilly Corporation 04/30/12 03/02/09 $8,800 $300 $ 2,900

Skyelab Inc. 12/14/12 04/30/12 $8,000 $275 $8,525

The Form 1099 Marvin and Tracy received from their broker indicated total

sales of $30,325 (i.e., sales were reported net of commissions). In addition, on

July 19, Marvin sells a Barry Sanders football card for $600. He paid $20 for the

card in June 1999. Marvin and Tracy ask you to prepare their 2012 Schedule D. Their 2011

schedule D indicates that they had a $4,500 net long-term capital loss in 2011.

Marvins Social Security number is 567-22-3495 and Tracys is 654-33-8790.

Forms and instructions can be downloaded from the IRS Web site (www.irs.gov).

Moduel 3 90. Mark Pari is a self-employed electrician who exclusively uses a room in his home to

perform the administrative functions related to his business. The room is 250

square feet of the 2,500 total square feet of his home. Marks income from his

business before considering the cost of his home office is $62,890. He incurs the

following expenses related to his home:

Mortgage interest $10,000

Property taxes 1,500

Insurance 600

Gas and electric 1,800

Repairs and maintenance 500

Cable television 350

Phone ($15 per month for a separate phone

number for the office) 420

House cleaning 1,400

Long-distance phone calls (business-related) 670

Kitchen renovations 4,700

Assume that the home is worth $200,000. Marks basis is 140,000, the value of the land

is 20% of basis, and the applicable depreciation percentage is 2.564%. Complete form

8829 using the above information. Marks Social Security number is 136-42-5677.

Forms and instructions can be downloaded from the IRS Web site (www.irs.gov).

Moduel 3 95. Stephanie Zane is the sole proprietor of Shear Madness, a hair salon. Her revenue

comes from two sources, haircuts and the sale of hair products. Stephanie has three

employees whose compensation consists of a weekly salary and a 40% commission

on the services they provide to the customer. Stephanie uses a hybrid method of

accountingthe cash method for haircuts and the accrual method for sales of hair

products. For the current year she has the following revenue and expenses:

Revenue from haircuts $141,650

Revenue from the sale of products 36,240

Beginning inventory of product 1,756

Ending inventory of product 1,469

Product purchased 18,345

Gross salaries (including commission) 66,000

Social Security taxes 5,049

Employee withholding:

Social Security taxes 5,049

Federal taxes 15,200

State taxes 4,200

Other payroll taxes 375

Advertising 1,200

Rent 12,100

Utilities 1,600

Phone 570

Postage 220

Accounting fees 1,200

Legal fees 625

Complete Form 1040 Schedule C (Profit or Loss From Business) and Form 1040

Schedule SE (Self-Employment Tax) using the above information. Stephanies

Social Security number is 123-62-7897, her employer ID number is 05-9987561,

and her business address is 99 Fortin Lane, Metuchen, New Jersey 07865. Forms

and instructions can be downloaded from the IRS Web site (www.irs.gov).

Moduel 3 91. Rick and Debbie Siravo own a beachfront home in Wrightsville Beach, N.C. During

the year, they rent it for 20 weeks (140 days) at $1,100 per week and use it 10 days

for personal purposes. Rick actively participates in the management of the property,

but does not qualify as a real estate professional. Their adjusted gross income for

the year is $137,200 and the costs of maintaining the home for the year are:

Mortgage interest $15,500

Real property taxes 4,500

Management fee 1,085

Insurance 1,200

Utilities 2,200

Cleaning service (only for rental period) 1,500

Repairs and maintenance 700

Depreciation (unallocated) 8,500

Complete Form 1040 Schedule E and Form 8582 using the above information.

Ricks Social Security number is 036-87-1458, Debbies Social Security number is

035-11-4856, and the address of the home is 435 Beachway Lane, Wrightsville

Beach, NC 28480. Forms and instructions can be downloaded from the IRS Web site (www.irs.gov).

Moduel 5: 44. LO6 Rograin Corporation purchases turning lathes costing $1,033,000 and a bus

fleet costing $975,000 in June of the current year. The lathes are 7-year MACRS

property, and the buses are 5-year MACRS property. Rograin does not want to

claim bonus depreciation.

a. What is Rograins maximum Section 179 deduction?

b. Assuming that Rograin deducts the maximum Section 179 expense, what are

the depreciable basis of the lathes and the bus fleet?

c. If Rograin wants to maximize its cost recovery this year, how much first-year

depreciation may it deduct in addition to the Section 179 deduction? Form 4652

Module 5 flow chart - I cant get the flow chart to copy on here so just answer what you can. I understand the form numbers and need help to know what line to put what amount on and how we achieved that amount from the question at hand. So need moduole you are working with, form number, and line and amount (in parenthesis place the calculation in regards to the amount obtained Below is the template that the professor provided yet does not make sense to me. Please help this is very confusing and I want to understand it.

Template information from the professor

Additional info:

Week 6 Target Amounts;

Following are the target amounts:

AGI Refund

Phase l 129,163 (1,846)

Phase ll 138,309 4,270

Phase lll 155,475 1,675

Note: You only required to submit Phase III for a grade, but you need to work through all phases.

Prof Smith

Students;

You are to read the instructions provided in all three parts (phases) and then by using all information

prepare the following forms for Phase III only (You do not have to submit forms for phases I and II):

Phase III:

Form 1040:

134541

Line 22

179259

Line 37

175787

Line 74a

Schedule A:

Line 29

32952

Schedule B:

Line 4

2156

Schedule C:

Line 31

10784

Schedule D:

Line 7(h)

-490

Prof Smith

Schedule E: (page 1 only)

Line 23g

Schedule SE:

Line 5

Line 6

Form 4797: Pages 1 and 2

Form 8606 Page 1 only:

Form 8863 pages 1 and 2:

Form 8917:

Form 4562- Sch C 1:

Form 4562- Rental Royalty 1:

Form 8582 Page 1 only:

Form 8283 page 1 only:

Form 8829 page 1 only:

Line 35

Line 41

Note: Please complete all forms listed above in detail using provided target amounts for Phase III only.

Prof Smith