Prepare an income tax return (with appropriate schedules) for the Smiths for 2019.

Q textbook Home Insert Design Layout References Calibri (Body) 11 - A A A B IV .abe X2 X A A Mailings A = Review E = = Acct 3350 Case Facts-spring 2020 View = = + 1 AalbCode = AaBaccddee AaBbcc Heading 1 AabhccDdE AaBb Heading 2 AaBbccddee Paste No Spacing LO Styles Pane Subtitle Spring 2020 ACCT 3350 4. On August 5, 2010, Robert purchased 3,000 shares of Groupon, Inc common stock for $20 a share as part of its initial public offering. By December 2019, the corporation ended its last game and its stock became worthles. TAX CASE STUDY-Individual PROJECT TAX YEAR 2019 Federal Return Only 5. Besides the items previously noted, the Smith's had the following receipts for 2019: Lisa's consulting income $120,000 Interest income: City of Dallas bonds $25.000 Ford Mator Campany bonds $19,000 Robert T. and Lisa. Smith (ages 52 and 51) are married and live at 5678 Orange Blossom Trail, Dallas, TX 75249. Robert is the regional manager for a software company (SoftWare, INC), while Lisa is a self- employed CPA. They file a joint return and use the cash basis for tax purposes. Loan repayment by Sarah Duval Cash gifts from Usa's parents Federal income tax refund (2018 return) $30,000 $20.000 $9,000 1. Robert receives a yearly salary of $99,000, plus an annual bonus, from Software INC. The annual bonus is determined in December of each year but not paid until January of the following year. Robert's bonus is $50,000 for 2018 (received in 2019) and 566.000 for 2019 received in 2020), Robert contributed $20,000 to the plan in 2018-and Software made a matching contribution of $10,000. The company provides an office for Robert's use that is located at Suite 419, 101 Real Boulevard, Dallas, TX. you need to determine what the total wages on Form W-2 will be based on the numbers noted above- do not calculate Medicare/social security payments. 7. In addition to the items already mentioned, the Smith's had the following expenditures for 2019 $4,000 $5,000 Life insurance premiums Medical and dental expense not covered by Insurance Medical insurance noted above Taxes: State and local sales taxes (actual amount pald) ributions- Salvation Army (Plana branch) Contribution to an indigent local family that has fallen on hard times $14,000 $11,000 $5,000 2. Usa is a licensed CPA in Texas who works part-time on a consultine basis. Her major clients are real estate developers both residential and commercial). Because she limits her engagements, she does not have a separate affice but dacs her work at the client's premises ar in her office at home see item 4 below). Her business expenses for 2019 are summarized below: Supplies 54,000 $5,000 CPA license fer $1.500 Subscriptions to professional journals $3,500 Dues to professional organizations- $1.250 10% relates to lobbying and PAC contributions Purchase of a new computer for the office $5,000 Volunteer teacher at a local university-the fair market value of the time that she spends is $20,000 She would have been billine dients an equivalent amount In addition, she drove the family Acura (purchased on June 7, 2016) 15,000 miles on her job assignments. Regarding the Acura, Lisa uses the automatic mileage method for tax deduction purpo: She drove the car for 25,000 miles during the year. 8 2019, the Smith's had gambling winnings of $8,000 and losses of $15,000-all supported by 2. In addition to the above, the Smith's had the following stock transactions during the year: Stock Date Acquired Date Sold SalesPrice Purchase Price bert's Form W-Z from Software shows $20,000 withheld for Federal Income tax Software has an untable expense reimbursement policy. The Smith's also have made 4 quarterly income tax payments of $10,000 each. Lisa's professional activity code is 541310. Relevant Social Security numbers are noted below: Social Security Name Number Birth Date Robert 451-11-1111 07/01/1963 Lisa 461-45-6781 03/20/1965 150 sh Pfizer Corp 5/12/89 50 sh Allergan 6/10/18 25 sh ExxonMobil 4/28/18 60 sh Texaco 9/11/13 300 sh Hula Hoop 1/7/16 8/15/19 10/23/19 9/4/19 10/27/19 12/1/19 $5,000 $1,525 $1,900 $11,410 $ 6.125 $3,000 $1,800 $2.700 $9,100 $3.150 Page 2 of 3 801 Words English (US) E - + 100% Q textbook Home Insert Design Layout References Calibri (Body) 11 - A A A B IV .abe X2 X A A Mailings A = Review E = = Acct 3350 Case Facts-spring 2020 View = = + 1 AalbCode = AaBaccddee AaBbcc Heading 1 AabhccDdE AaBb Heading 2 AaBbccddee Paste No Spacing LO Styles Pane Subtitle Spring 2020 ACCT 3350 4. On August 5, 2010, Robert purchased 3,000 shares of Groupon, Inc common stock for $20 a share as part of its initial public offering. By December 2019, the corporation ended its last game and its stock became worthles. TAX CASE STUDY-Individual PROJECT TAX YEAR 2019 Federal Return Only 5. Besides the items previously noted, the Smith's had the following receipts for 2019: Lisa's consulting income $120,000 Interest income: City of Dallas bonds $25.000 Ford Mator Campany bonds $19,000 Robert T. and Lisa. Smith (ages 52 and 51) are married and live at 5678 Orange Blossom Trail, Dallas, TX 75249. Robert is the regional manager for a software company (SoftWare, INC), while Lisa is a self- employed CPA. They file a joint return and use the cash basis for tax purposes. Loan repayment by Sarah Duval Cash gifts from Usa's parents Federal income tax refund (2018 return) $30,000 $20.000 $9,000 1. Robert receives a yearly salary of $99,000, plus an annual bonus, from Software INC. The annual bonus is determined in December of each year but not paid until January of the following year. Robert's bonus is $50,000 for 2018 (received in 2019) and 566.000 for 2019 received in 2020), Robert contributed $20,000 to the plan in 2018-and Software made a matching contribution of $10,000. The company provides an office for Robert's use that is located at Suite 419, 101 Real Boulevard, Dallas, TX. you need to determine what the total wages on Form W-2 will be based on the numbers noted above- do not calculate Medicare/social security payments. 7. In addition to the items already mentioned, the Smith's had the following expenditures for 2019 $4,000 $5,000 Life insurance premiums Medical and dental expense not covered by Insurance Medical insurance noted above Taxes: State and local sales taxes (actual amount pald) ributions- Salvation Army (Plana branch) Contribution to an indigent local family that has fallen on hard times $14,000 $11,000 $5,000 2. Usa is a licensed CPA in Texas who works part-time on a consultine basis. Her major clients are real estate developers both residential and commercial). Because she limits her engagements, she does not have a separate affice but dacs her work at the client's premises ar in her office at home see item 4 below). Her business expenses for 2019 are summarized below: Supplies 54,000 $5,000 CPA license fer $1.500 Subscriptions to professional journals $3,500 Dues to professional organizations- $1.250 10% relates to lobbying and PAC contributions Purchase of a new computer for the office $5,000 Volunteer teacher at a local university-the fair market value of the time that she spends is $20,000 She would have been billine dients an equivalent amount In addition, she drove the family Acura (purchased on June 7, 2016) 15,000 miles on her job assignments. Regarding the Acura, Lisa uses the automatic mileage method for tax deduction purpo: She drove the car for 25,000 miles during the year. 8 2019, the Smith's had gambling winnings of $8,000 and losses of $15,000-all supported by 2. In addition to the above, the Smith's had the following stock transactions during the year: Stock Date Acquired Date Sold SalesPrice Purchase Price bert's Form W-Z from Software shows $20,000 withheld for Federal Income tax Software has an untable expense reimbursement policy. The Smith's also have made 4 quarterly income tax payments of $10,000 each. Lisa's professional activity code is 541310. Relevant Social Security numbers are noted below: Social Security Name Number Birth Date Robert 451-11-1111 07/01/1963 Lisa 461-45-6781 03/20/1965 150 sh Pfizer Corp 5/12/89 50 sh Allergan 6/10/18 25 sh ExxonMobil 4/28/18 60 sh Texaco 9/11/13 300 sh Hula Hoop 1/7/16 8/15/19 10/23/19 9/4/19 10/27/19 12/1/19 $5,000 $1,525 $1,900 $11,410 $ 6.125 $3,000 $1,800 $2.700 $9,100 $3.150 Page 2 of 3 801 Words English (US) E - + 100%