Part I compute form 1040,4686, Schedule A,C

Chapter Review Problems 44 Tax Return Problem -Decision Making Communications Jane Smith, age 40, is single and has no dependents. She is employed as a legal secretary by Legal Services, Inc. She owns and operates Typing services located near the campus of Florida Atlantic University at 1986 campus Drive. Jane is a material participant in the business. She is a cash basis taxpayer. Jane lives at 2020 Oakcrest Road, BLOCK Boca Raton, FL 33431. Jane's Social Security number is 123-45-6789. jane indicates that she wants to designate $3 to the Presidential Election Campaign Fund. Jane had health insurance for all months of 2016. During 2016, Jane had the following income and expense items: 5100,000 salary from Legal Service b. $20,000 gross receipts from her typing services business. c. $700 interest income from Third National Bank. d. $1,o00 Christmas bonus from Legal Services, Inc. e $60,000 life insurance pxoceeds on the death of her sister. f $5,000 check given to her by her wealthy aunt. g $100 won in a bingo game. h. Expenses connected with the typing service: Office rent Supplies Utilities and selephone $7,000 4,400 4,680 5,000 500 3,000 Wages to parrsime sypists Payroll taxes Equipment rentals