Please do questions 1 and 3-5, I already know 2.

Chapter 16: Learning Activity Important Note: This scenario has been modified to include Form W-2 information that was not a part of the federal scenario. Review the scenario carefully. Scenario - Kim Yamaguchi Complete a California state tax return for Kim Yamaguchi. Kim Yamaguchi, single (age 38, DOB: 7/14/1980, SSN: 223-01-6215), owns two residential rental properties. Kim actively participates in the rental operations and does not use the houses personally Mr. Yamaguchi lives at 3548 Sunflower Lane, Idyllwild, CA 92549. Kim does not wish to designate $3 of his taxes for the Presidential Election Campaign Fund. He was covered by health insurance the entire year and is employed as a cybersecurity specialist. Kim owns his home and did not pay rent. Kim's first rental property is located at 7211 Mountain Road, Idyllwild, CA 92549. The house was purchased on May 5, 2014 for $175,000, of which the land portion was $35,000. He received $14,300 in rent and incurred the following expenses: Mortgage interest Lawn care Trash service Mileage $5,671 640 180 82 miles Taxes Insurance Repairs $ 1,325 472 379 Kim's second rental property is located near Malibu beach. The address is 2614 Pelican Lane, Malibu, CA 90265. He purchased the house on January 3, 2018 for $189,500, of which the land portion was $65,000. He received $23,600 in rent and incurred the following expenses: Water $ 284 632 Electricity Telephone Trash service Mortgage interest Lawn care Cleaning services $1,220 288 160 8,990 920 900 Insurance Repairs Taxes Advertising 464 3,345 624 Kim made two trips to the rental property in Malibu. His first trip in April was 670 miles and the second trip in September was also 670 miles. His total miles driven in 2018 were 18,950. For clarity, please use Form 540 to do all California returns. The Federal Form 1040 and Schedule E is provided after the scenario. OMB No 1545-0008 FAST Use re a Employee's social security number 223-01-6215 b Employer identification number (EIN) 53-0325789 c Employer's name, address, and ZIP code 1 Wages, tips, other compensation 95000.00 3 Social security wages 102000.00 5 Medicare wages and tips 102000.00 7 Social security tips Visit the IRS website at f ile www.is.goville 2 Federal income tax withheld 16750.94 4 Social security tax withheld 6324.00 6 Medicare tax withheld 1580.50 8 Allocated tips COMPUTER ASSOCIATES 458 Technology Blvd. Idyllwild, CA 92549 d Control number 9 Verification code 10 Dependent care benefits e Employee's first name and initial Last name Suff. 11 Nonqualified plans Kim Yamaguchi 12a See instructions for box 12 D 7000.00 12b 13 Statutory employee Retirement plan Third-party sick pay 3548 Sunflower Lane Idyllwild, CA 92549 14 Other CASDI - 950.00 f Employee's address and ZIP code 15 State Employer's state ID number CA 53-0658-1 16 State wages, tips, etc. 17 State income tax 95000.00 6256.20 18 Local wages, tips, etc. 19 Local income tax (20 Locality name Department of the Treasury - Internal Revenue Service I Wage and Tax Form W-2 Statement Copy B - To Be Filed With Employee's FEDERAL Tax Return This information is being furnished to the Internal Revenue Service 20XX 2018 NO 1585 & 1040 U.S. Individual Income Tax Return 1040 T S n 2018 OMB No 1545-00743 O s talenie Fling status: Single Married filing jointy Married fing separately Head of household Qualifying widower) Your first name and initial lastame Your social security number KIM YAMAGUCHI 223-01-6215 Your standard deduction Someone con claim you as a dependent you were bombefore January 2, 1954 You are blind joint retum, spouse's first name and last name Spouse's social security number 2 Full-year health care coverage Spouse standard deduction someone can claim your spouse as a dependent Spouse was bombefore January 2, 1954 Spouse is blind Spouse mices on a separate or you were us e Home address number and streets of you have a PO box, se instructions Apt. 3548 SUNFLOWER LANE City, town or post office, state, and ZIP code. If you have a foreign address, and she IDYLLWILD CA 92549- Dependents (see instructions Social Security number Retinito you (1) F rame Presidential Election Campaign You Spouse more than our dependents sent and heN 16 forse Under en oferta deng a n betydende Sign Here Your signature Date Your c on CYBERSECURITY Spouse's Occupation Spouse's signature. If a joint rebum both must sign D ate yes Preparer's name Prepares ature Paid TAX PREPARER ITAX PREPARER PSSSS555555-5555555 E Preparer Firm's name PROFESSIONAL PREPARERS, INC Phone no SSS-SSS-SSSS Use Only 1 040 UNCLE SAM LOOP RICHMOND VA 23226- For Disclosure. Privacy Act and paperwork Reduction Act Notices wrate instructions 1040 2018 23-01-15 Page 2 95,000 241 14.444 Form 1040 (2018) KIM YAMAGUCHI 1 Wes tin Altach Form) W2 20 Tax exempt interest Taxable interest mw 2 . a Qualified dividends Ordinary dividends 4 TRAS, Densions, and mutes Taxatient 5a Social Security benefits Taxable amount 6 Total income. Adres through 5. Add an amount from Schedule 1. line 22 1202 7 Adjusted gross income. If you have no t to income, enter the amount from line, otherwise, subtract Schedule 1 Ine 36, from line 6 Standard deduction or itemized deduction from Schedule) 9 Qualified business income deduction is instructions) 10 Taxable income Subtractines 8 and 9 from line 7. If ressenter 11 a Tax(se ) 14.444 (check it any from Form ) 604 Form4972 0 Add any amount from Schedule and check here 12a Chadtax credivredit for other dependents Add any amount from Schedule and check here 13 Subtractine 12 from 11 ore or less entero. 14 mrtaves Attach Schedule 15 Total tax lines 13 and 14 16 Federal income tax withheld from Forms W-2 and 1090 17 Retud credits a LC ( Int) Dsch 8812 c Form 3063 Add any amount from Schedule 18 Adines 16 and 17 Thes a paments 19 i ne 18 is more than 15, subtractie 15 from the 18 This is the amount you overpad Refund 204 Amount of time 19 you wantended to you. If Form is tached, check here Routing number d Account number A 21 y o 2010 estimada 21 Amount You Owe 22 Amount you owe. Subtractine 18 from line 15. For details on how to pay, see instructions 142444 14.444 16,751 071 2.307 2021 * Checking som how to pay, see on Go to www.insgow Form1040 for instructions and the latest information 10400 L OMB No 1545-0074 2018 Attachment See No 01 Your social security number 223-01-6215 1-9b 10 156 1.2021 17 18 120b 21 SCHEDULE 1 Form 1040) Additional Income and Adjustments to Income Department of the Treasury Arsch to Form 1040 w a Revenue Service Go to www.in.gov. Form1040 for instructions and the latest information Names shown on Form 1040 KIM YAMAGUCHT Additional 1-9b Reserved Income 10 Taxable refunds, credits, or offsets of state and local income taxes 11 Alimony received 12 Business income or loss). Attach Schedule Cor CEZ 13 Capital gain or loss). Attach Schedule Dif required. If not required, check here 14 Other gains or losses). Attach Form 4797 15a Reserved - 16a Reserved 17 Rental real estate, royalties, partnerships, Scorporations, trusts, etc. Altach Schedule E 18 Farm income or loss) Attach Schedule 19 Unemployment compensation 20a Reserved 21 Other income List type and amount 22 Combine the amounts in the far right column. If you don't have any adjustments to income, enter here and include on Form 1040 in 6. Otherwise, go to line 23 Adjustments 23 Educator expenses 23 | to Income 24 Certain business expenses of reservists, performing artists and foe-basis goverment officials. Attach Form 2106 25 Health Savings account deduction. Attach Form 8889 25 26 Moving expenses for members of the Armed Forces Attach Form 3903 27 Deductible part of self-employment tax Attach Schedule SE 28 Self-employed SEP, SIMPLE, and qualified plans , 29 Self employed health insurance deduction 30 Penalty on earty withdrawal of savings 31a Alimony paid b Recipient's SSN 32 IRA deduction 33 Student loan interest deduction 34 Reserved 35 Reserved 36 Add lines 23 through 35 For Paperwork Reduction Act Notice, see your tax return instructions 22 1,202 24 a a lla Schedule 1 Form 1040) 2011 2018 Sequence No 1 SCHEDULE E OMB No 1545-0074 Supplemental Income and Loss (Form 1040) (From rental real estate, royalties, partnerships, Scorporations, estates, trusts, REMICS, etc.) Department of the Treasury Attach to Form 1040 1040NR, or Form 1041 Attachment Service 1991 Go to www.irs.gov/Schedule for instructions and the latest information Names shown on retum Your SOCKS Security number KIM YAMAGUCHI 223-01-6215 Partl Income or Loss From Rental Real Estate and Royalties Note: If you are in the business of renting personal property, use Schedule C or C-EZ (see instructions). If you are an individual report farm rental income or loss from Form 4835 on page 2. line 40. A Did you make any payments in 2018 that would require you to file Form(s) 10997 (see instructions) .. Yes No B If "Yes," did you or will you file required Forms 1099?.. ...... Yes No 1a Physical address of each property (street city, state, ZIP code) A 7211 MOUNTAIN ROAD IDYLLWILD CA 92549- B 2614 PELICAN LANE MALIBU CA 90265- 1 2 Type of Property (from list below) Personal Use Days QJV For each rental real estate property listed above, report the number of fair rental and personal use days. Check the QJV box only if you meet the requirements to file as a qualified joint venture. See instructions B Fair Rental Days 365 3621 | 3 Type of Property: 1 Single Family Residence 3 Vacation/Short-Term Rental 5 Land 7 Self-Rental 2 Multi-Family Residence 4 Commercial 6 Royalties 8 Other (describe) Income Properties: A B 3 Rents received 14,30011 23, 6001 4 Royalties received Expenses: Advertising 624 6 Auto and travel (see instructions). . . 457 30 7 Cleaning and maintenance Commissions 9 Insurance 472 6 32 10 Legal and other professional fees 11 Management fees 12 Mortgage interest paid to banks, etc (see instructions) 5, 671 8 ,990 13 Other interest Repairs 379 4 641 15 Supplies Taxes 1, 325 3, 345 17 Utilities 1.7921 Depreciation expense or depletion 5,0901 4.339 Other st) 020 1,0801 20 Total expenses. Add lines 5 through 19 13,80211 22896 21 Subtract line 20 from line 3 (rents) and/or 4 (royalties). If result is a (loss). See instructions to find out if you must file Form 6198 7041 22 Deductible rental real estate loss after imitation, if any. on Form 8582 (see instructions) 22 23 a total of all amounts reported on line 3 for all rental properties 23a 37,900 b Total of all amounts reported on line 4 for all royalty properties. 23b Total of all amounts reported on line 12 for all properties 23c 14.6611 d Total of all amounts reported on line 18 for all properties 23d 9,4291 e Tots of all amounts reported on line 20 for all properties 23e 36.6991 24 Income. Add positive amounts shown on line 21. Do not include any losses. 2411202 25 Losses. Add royalty losses from line 21 and rental real estate losses from line 22 Enter total losses here 25 26 Total rental real estate and royalty income or loss). Combine lines 24 and 25. Enter the result here. If Parts II, III, IV, and line 40 on page 2 do not apply to you, also enter this amount on Schedule 1 (Form 1040), line 17. or Form 1040NR line 18. Otherwise, include this amount in the total on line 41 on page 2 1,202 For Paperwork Reduction Act Notice, see the separate instructions Schedule E (Form 1040) 2018 20 21 1. Answer the following question based on the tax return you prepared for Kim Yamaguchi. Select the exemption amount: CA) $354 CB) $118 C C) $236 CD) $ 0 2. Answer the following question based on the tax return you prepared for Kim Yamaguchi. Select the CA taxable income: CA) $96,202 CB) $90,599 C C) $95,000 CD) $91,801 3. Answer the following question based on the tax return you prepared for Kim Yamaguchi. Select the tax from the CA Tax Tables: C A) $6,088 CB) $5,791 C C) $5,679 CD) $6,200 Answer the following question based on the tax return you prepared for Kim Yamaguchi. Select the CA income tax withheld: CA) $5,673 CB) $6,256 CC) $ 0 C D) $5,791 5. Answer the following question based on the tax return you prepared for Kim Yamaguchi. Select the refund: A) $583 CB) $174 CC) $695 C D) $286