Note: This problem is for the 2017 tax year.

Ashley Panda lives at 1310 Meadow Lane, Wayne, OH 43466, and her Social Security number is 123-45-6789. Ashley is single and has a 20-year-old son, Bill. His Social Security number is 111-11-1112. Bill lives with Ashley, and she fully supports him. Bill spent 2017 traveling in Europe and was not a college student. He had gross income of $4,655 in 2017.

Bill paid $4,000 of lodging expenses that Ashley reimbursed after they were fully documented. Ashley paid the $4,000 to Bill using a check from her sole proprietorship. That amount is not included in the items listed below. Ashley had substantial health problems during 2017, and many of her expenses were not reimbursed by her health insurance.

Ashley owns Panda Enterprises, LLC (98-7654321), a data processing service which she operates as a sole proprietorship. Her business is located at 456 Hill Street, Wayne, OH 43466. The business activity code is 514210. Her 2018 Form 1040, Schedule C for Panda Enterprises shows revenues of $315,000, office expenses of $66,759, employee salary of $63,000, employee payroll taxes of $4,820, business meal expenses (before the 50% reduction) of $22,000, and rent expense of $34,000. The rent expense includes payments related to renting an office ($30,000) and payments related to renting various equipment ($4,000). There is no depreciation because all depreciable equipment owned has been fully depreciated in previous years. No fringe benefits are provided to the employee. Ashley personally purchases health insurance on herself and Bill. The premiums are $23,000 per year.

Ashley has an extensive stock portfolio and has prepared the following analysis:

Stock	Number of Shares			Date Purchased	Date Sold	Per-Share Cost			Per-Share Selling Price			Total Dividends
Beige		10		10/18/2016	10/11/2017		$80			$ 74			$30
Garland		30		10/11/2010	10/11/2017		43			157			70
Peach		15		3/10/2017	8/11/2017		62			33			45

Note: Ashley received a Form 1099B from her stockbroker that included the adjusted basis and sales proceeds for each of her stock transactions. The per-share cost includes commissions, and the per-share selling price is net of commissions. Also, the dividends are the actual dividends received in 2017, and these are both ordinary dividends and qualified dividends.

Ashley had $800 of interest income from State of Ohio bonds and $600 of interest income on her Wayne Savings Bank account. She paid $25,000 of alimony to her former husband. His Social Security number is 123-45-6788.

Ashley itemizes her deductions and provides the following information, which may be relevant to her return:

Item	Amount		Comment
Unreimbursed medical expenses for Ashley	$11,786		Does not include health insurance premiums.
State income taxes paid	1,830
Real property taxes on personal residence	3,230
Interest paid on home mortgage (Form 1098)	8,137		The loan is secured by the residence and was incurred when the home was purchased.
Charitable contributions	1,399		$940 cash payments to Ashleys church and $459 cash payments made to homeless persons for whom she felt sorry. She can document all the expenditures.
Sales taxes	619		Amount per sales tax table.

Ashley made a $26,000 estimated Federal income tax payment, does not want any of her taxes to finance presidential elections, has no foreign bank accounts or trusts, and wants any refund to be applied against her 2018 taxes.

Compute Ashley's net tax payable or refund due for 2017. If you use tax forms for your computations, you will need Form 1040 and its Schedules A, C, D, and SE, Form 8949 and the Qualified Dividends and Capital Gain Tax Worksheet. Ashley qualifies for the 199A deduction for qualified business income.

• Make realistic assumptions about any missing data.
• If an amount box does not require an entry or the answer is zero, enter "0".
• Enter all amounts as positive numbers, unless otherwise instructed.
• It may be necessary to complete the tax schedules before completing Form 1040.
• When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar.
• Use the Tax Rate Schedule provided. Do not use the Tax Tables.
• 
• Need to complete:
• Form 1040
• Schedule A
• Schedule C
• Schedule D
• Form 8949
• Schedule SE
• Qualified Dividends and Capital Gain Tax Worksheet

2017 Tax Rate Schedules of the is: amount over- $o 13,350 50,800 131,200 212,500 416,700 444,550 Single-Schedule X If taxable income of the is: But not amount Over- over- The tax is: over- $0 $9,325 ..... 10% $0 9,325 37,950 $932.50 + 15% 9,325 37,950 91,900 5,226.25 + 25% 37,950 91,900 191,650 18,713.75 + 28% 91,900 191,650 416,700 46,643.75 + 33% 191,650 416,700 418,400 120,910.25 + 35% 416,700 418,400...... 121,505.25 + 39.6% 418,400 Married filing jointly or Qualifying widow(er)-Schedule Y-1 If taxable income of the is: But not amount Over- over- The tax is: over- $0 $18,650 ...... 10% 18,650 75,900 $1,865.00 + 15% 18,650 75,900 153,100 10,452.50 + 25% 75,900 153,100 233,350 29,752.50 + 28% 153, 100 233,350 416,700 52,222.50 + 33% 233,350 416,700 470,700 112,728.00 + 35% 416,700 470,700 ...... 131,628.00 + 39.6% 470,700 Head of household-Schedule Z If taxable income But not Over over- The tax is: $0 $13,350 ...... 10% 13,350 50,800 $1,335.00 + 15% 50,800 131,2006,952.50 + 25% 131,200 212,500 27,052.50 + 28% 212,500 416,700 49,816.50 + 33% 416,700 444,550 117,202.50 + 35% 444,550 ...... 126,950.00 + 39.6% Married filing separately-Schedule Y-2 If taxable income is: But not Over- over- The tax is: $0 $9,325 ...... 10% 9,325 37,950 $932.50 + 15% 37,950 76,550 5,226.25 + 25% 76,550 116,675 14,876.25 + 28% 116,675 208,350 26,111.25 + 33% 208,350 235,350 56,364.00 + 35% 235,350 ...... 65,814.00 + 39.6% of the amount over- $o $o 9,325 37,950 76,550 116,675 235,350