Personal Outlays

1. The couple has the following dependent:

Pedrito Rodrguez Lpez, grandson of Pedro, who was born on August 15, 2011.

2. Pedro made four (4) payments of $2,000 in estimated contributions during 2021 (3/31/21, 6/15/21, 9/15/21 and 01/15/22) for a total of $8,000. Estimated payments match estimated tax payments. (Schedule T).

3. Marriage has the following deduction applicable to individuals:

480.7A

Interest paid by borrower $18,000

original loan amount $280,000

1. Requirements: Calculate

a. the net income (loss) of Medical Equipment & Supply.

b. Sugar Bakery's net income (loss).

c. the deduction for depreciation for the property used in the rental activity.

d. the net income (loss) from the rental activity.

and. adjusted gross income for marriage in 2021.

F. the net income subject to tax for the marriage in 2021.

g. the normal tax, the preferential rate tax and the total income tax.

h. the income tax payable or the refund to be received.