Please answer the following question on Excel Spreadsheet.

Andrew and Jessie Thompson are new clients for your firm.Andrew, 70, retired from his corporate job in 2018.He has continued to consult with a limited number of clients.Jessie, 68, continues to work in a part-time position.Neither Andrew nor Jessie are visually impaired.

On January 15, 2019, Andrew and Jessie sold their primary residence.Andrew and Jessie purchased the residence in 1995 for $220,000 and sold the residence for $600,000 (after all selling costs were deducted).Then, they purchased a one-level condo.

Jessie and Andrew have two children:Sue (32) and Lindsay(30).Sue is an attorney and is completely self-supporting.Lindsay is an artist with earned income of $9,000 in 2019.Jessie and Andrew pay the rent on Lindsay's apartment and provide well over 50% of Lindsay's support.

The Thompsons have asked you to prepare their 2019 taxes.Below is the information you have for the return:

Information regarding Andrew's consulting business:

• Consulting fees$50,000
• Mileagehe drove 3,000 miles to meet with clients
• Parking:200
• Supplies and copying fees1,000
• Business meals800
• Andrew uses a spare bedroom exclusively for a home office.
• The office is 200 square feet.

Jessie's w-2$40,000

Other income that Andrew and Jessie had during the year:

• Taxable corporate bond interest income$53,000
• Municipalbond interest (exempt interest)11,000
• Dividends (qualifying)10,000
• Social security benefits40,000
• Distributions from their 401k retirement account (Note: this is taxableincome)60,000

In reviewing their records, you determine they had minimal medical expenses.They incurred $20,000 in state and local income tax expense, and had charitable contributions of $7,000.The mortgage interest on the condo was $8,000.

Since the condo only has a one-car garage, they sold Jessie's car.They also sold a number of shares of stock:

• Loss on the sale of 500 shares, BIGO Inc.
• (stock was held for three years)$(2,000)
• Loss on sale of personal auto(7,000)
• Gain on sale of ABC Inc. Stock (held for 1 year and two days)8,000
• Loss on sale of ZXX Inc. stock purchased 5 years ago(5,000)

Determine the following for Andrew and Jessie's 2019 return:

• What is their filing status for this return?(3 points)
• What is Andrew's Schedule C income.Create section in your excel spreadsheet to calculate his Schedule C income. (10 points)
• What are their capital gains (losses)?Be specific (there are numerous categories).(10 points)