PROBLEM 1(15 Due: 10250201 to 1030/2017 John Smith, age 31, is single and has no dependenes At the beginsing of 2017, John sharled his excavation business and named it Earth Movers. Jom lives IS is located at 381 State Street, Lindon, UT. The zip code for boh addres ar 1045 Center Street,Lindon, UT, and his own Social Security number is 321-09-6456, and the business identifiesion namber is 98-1234567, Joln is a cash basis taxpayer. During 2017, Johe had the following items in connection with his basiness Fees foe servies Building rental expenee Office fursiture and equiement rental expense Office supplies $776,000 6000 Salary for secretary Salary for equiement oreraloes Fuel and oil for the equipmens Purchase of three frot-end loaders on Jauary 15,2017 34,0oR 92.000 7.000 21,000 5520,000. John made the election under sect. 179. 520,000 Purchase of a new dump truck on Jonuiry 18, 2017 During 2017, John had the folowing additional items Interest inoome from First Naional Bak Dividends from Exxon fordirary) Quarterly estimaled tax peyments 5 10,000 9,500 11,500 Assuming Jolen does noe itemize his deductions, compate his Federal income tax paryable (or refiand duc) [ for 20I NOTES: (1) Complete forms 1040 and 4562, scheduies B and C. Do not complese schodule SEThis schedule will be provided by the istnictor along with he solution next week, if necessary. NOTE: Form 4562 instructions cas be obtained from the IRS (or from it's wehsile) or from the instructor, if you desire to review them (2) The 2 assets purchased are both 5 year MaCRS property (see p. 6-34) He elects to use the maximum llowed section 179 expersing option on the fok-end loadors thowever, both iterns section 179 assets Incude any sectios 179 deduction (see p. 6-41) an forn 4562, part I, Ene 6 See page 6-41 and see Esample 6.55 on page 6-41 for hep. NOTE: Ignore "Boeus (aditional first year) depeecialion" (Form 4562, ne 14 Esee lext on p. 6-41) Note: See pages 83 to 84, 134 to 135 and 151 to 152 of CCH Individual's Filled-In Tax Return Forms booklet 1 2017 version) for help with Fomn 4562 & others, if needed [ within the Blackboard course mena, click the "Blank Foms ver. 2017 butle Review carefully lines 5 and 11 of the Fom 4562 for any possible limitations. See pages 4 & 5 of the 23 pages of Form 4562 depeeciation instructions, at IRS.pow for more infonmation on liitations[(a) Click "Foms&Publications" on left: (b) Click see page "Forms & Instruction na" and (c) Type in 1.4562" in "Find" box) ; 6-40 to 6-41 of the textbook and p. 19 to 20 of Publ 946) Enter estimated tax payments on line 65 of forn 1040. (Total for the year is $11,500 or $2,875 per quarter) [ topic to be covered lter, in 4 to 5 weeks 1 (3) (4) (5) (6) Explain why any amounts above were not included in your cal Show all computations on a supporting schedule. See pages C3 & CITto C1s of the Schedule C instructions for a list of professional ati- vity codes for use on scheduk C, Box B(see your 2016, Schedule C instructions book ). (T) Ignore any child tax credit on line 52 (8) NOTE: Since this is a 2017 problem, and we are using 2016 fores, make the following changes to the 2016 forms: (a) Fom 1040, line 42; $4,050 1040, line 40, see p. 3-4 of dext for 2017 standard deduction; and (c) Form 4562, line l = $510,000 and line 3-S2030,000 [no other changes to item (c) tor 2016] per exemption; (b) Fom (9) See Blackboard (Chp 6) "You Tube" video on "How to Fill Out Schedule C for Business PROBLEM 1(15 Due: 10250201 to 1030/2017 John Smith, age 31, is single and has no dependenes At the beginsing of 2017, John sharled his excavation business and named it Earth Movers. Jom lives IS is located at 381 State Street, Lindon, UT. The zip code for boh addres ar 1045 Center Street,Lindon, UT, and his own Social Security number is 321-09-6456, and the business identifiesion namber is 98-1234567, Joln is a cash basis taxpayer. During 2017, Johe had the following items in connection with his basiness Fees foe servies Building rental expenee Office fursiture and equiement rental expense Office supplies $776,000 6000 Salary for secretary Salary for equiement oreraloes Fuel and oil for the equipmens Purchase of three frot-end loaders on Jauary 15,2017 34,0oR 92.000 7.000 21,000 5520,000. John made the election under sect. 179. 520,000 Purchase of a new dump truck on Jonuiry 18, 2017 During 2017, John had the folowing additional items Interest inoome from First Naional Bak Dividends from Exxon fordirary) Quarterly estimaled tax peyments 5 10,000 9,500 11,500 Assuming Jolen does noe itemize his deductions, compate his Federal income tax paryable (or refiand duc) [ for 20I NOTES: (1) Complete forms 1040 and 4562, scheduies B and C. Do not complese schodule SEThis schedule will be provided by the istnictor along with he solution next week, if necessary. NOTE: Form 4562 instructions cas be obtained from the IRS (or from it's wehsile) or from the instructor, if you desire to review them (2) The 2 assets purchased are both 5 year MaCRS property (see p. 6-34) He elects to use the maximum llowed section 179 expersing option on the fok-end loadors thowever, both iterns section 179 assets Incude any sectios 179 deduction (see p. 6-41) an forn 4562, part I, Ene 6 See page 6-41 and see Esample 6.55 on page 6-41 for hep. NOTE: Ignore "Boeus (aditional first year) depeecialion" (Form 4562, ne 14 Esee lext on p. 6-41) Note: See pages 83 to 84, 134 to 135 and 151 to 152 of CCH Individual's Filled-In Tax Return Forms booklet 1 2017 version) for help with Fomn 4562 & others, if needed [ within the Blackboard course mena, click the "Blank Foms ver. 2017 butle Review carefully lines 5 and 11 of the Fom 4562 for any possible limitations. See pages 4 & 5 of the 23 pages of Form 4562 depeeciation instructions, at IRS.pow for more infonmation on liitations[(a) Click "Foms&Publications" on left: (b) Click see page "Forms & Instruction na" and (c) Type in 1.4562" in "Find" box) ; 6-40 to 6-41 of the textbook and p. 19 to 20 of Publ 946) Enter estimated tax payments on line 65 of forn 1040. (Total for the year is $11,500 or $2,875 per quarter) [ topic to be covered lter, in 4 to 5 weeks 1 (3) (4) (5) (6) Explain why any amounts above were not included in your cal Show all computations on a supporting schedule. See pages C3 & CITto C1s of the Schedule C instructions for a list of professional ati- vity codes for use on scheduk C, Box B(see your 2016, Schedule C instructions book ). (T) Ignore any child tax credit on line 52 (8) NOTE: Since this is a 2017 problem, and we are using 2016 fores, make the following changes to the 2016 forms: (a) Fom 1040, line 42; $4,050 1040, line 40, see p. 3-4 of dext for 2017 standard deduction; and (c) Form 4562, line l = $510,000 and line 3-S2030,000 [no other changes to item (c) tor 2016] per exemption; (b) Fom (9) See Blackboard (Chp 6) "You Tube" video on "How to Fill Out Schedule C for Business