Required: For tax year 2022, complete (and attach in the following order): Form 1040, Schedule 1 (Form 1040), Schedule 2 (Form 1040), Form SE, Schedule A (Form 1040), Schedule C (Form 1040), Form 4562, Schedule D (Form 1040), Form 8949, and Form 8995. Do not complete Forms 8959 or 8960 and ignore any possible tax credits or penalties as we have not covered those. You can google these forms or find them on IRS.gov. Depending on when you take the course, the 2022 forms may not be available. You may substitute other year's forms (for example, you may use the 2021 forms). Even if you use the forms from different years, you should apply the 2022 tax law ot the problem (the rules we have been learning in class). You should show any work on a supplemental sheet including one showing your calculations for depreciation, gain/loss, and tax liability, etc. This will allow you to receive partial credit. This is to be turned in on paper. Group Work: You may work in a group of up to two total if you so choose. Group work is not required. If you are working in a group, only one person will turn in the project, but make sure that both names are listed. You can utilize the discussion board to try to find a partner. Check your course syllabus for the due date/time. I will not accept late assignments but will accept early submissions. Joe and Stacy Hill are married and file a joint income tax return. Their address is 390 Swingline Road, Columbus, OH 43201. Joe's Social Security number is 123-45-6789, and Stacy's is 987-65-4321. They have no children. Stacy, however, was married previously. Joe's date of birth is 02/24/1976 and Stacy's is 07/09/1978. Joe is a construction worker, and Stacy is self-employed at a successful retail/sports memorabilia establishment (Buckeye Sales), where she materially participates. They report all their income and expenses on the cash method and are calendar year taxpayers. For 2022, they report the following items of income and expense: Joe's salary $88,000 Property tax on their personal residence 5,800 State income tax 4,000 Mortgage interest paid on residence 11,000 Qualified medical expenses 22,000 Federal income tax withheld on Joe's salary 13,200 Income tax preparation fee for the prior year's income tax return paid this year 1,300 (($700) is allocated to preparation of Schedule C) Alimony paid to Stacy's ex-husband 12,000 (Divorce was in 2015) Gift from Stacy's mother 8,000 Municipal bond interest 1,200Capital Gains and Losses: Stacy and Joe sold 100 shares of PDQ Corp. common stock on October 8, 2022, for $280,000. They acquired the stock on December 15, 2019, for $200,000. They also sold 75 shares of JSB Corp. common stock on June 18, 2022, for $200,000. Stacy & Joe acquired this stock on September 18, 2013, for $300,000. The following is exclusive to Stacy's business: Buckeye Sales is located at 5325 Lane Ave, Columbus, OH 43201. It is engaged in the sale of college apparel with an employer identification number (EIN) of 75-2010008. It is on the cash basis. The company began business on January 1, 2014. Other information follows. You may assume that any expense of the business in an ordinary, necessary, and reasonable expense. It values inventory at cost. Estimated Tax Payments: The business deposited estimated federal income tax payments as follows: April 15, 2022 $ 7,500 July 15, 2022 7,500 September 15, 2022 7,500 December 15, 2022 7,500 $ 30,000 Sales and Cost of Goods Sold: Buckeye had gross receipts of $815,000. Customers returned items totaling $69,000. The inventory at the beginning of the year was $608,000 and was $585,000 at the end of the year. Purchases during the year were $200,000 Compensation of Employees: Start-Up Expenditures: Buckeye incurred $27,500 of start-up expenditures before opening on January 1, 2014. For tax purposes, it elected under 195 to deduct $5,000 in 2014 and amortize the remaining $22,500, with a full month's amortization taken for January 2014. Employee Wages Mary Travis 50,000$ Sam Baker 22,000 Lilly Limb 18,500 90,500$Fixed Assets and Depreciation: For tax purposes: All assets are MACRS property as follows: Store building, 39-year non-residential real property, Equipment, 7-year property, and Trucks, 5-year property. Buckeye acquired the store building for $3.5 million and placed it in service on May 2, 2017. It acquired two pieces of equipment: $300,000 (Equipment 1) and $775,000 (Equipment 2) and placed them in service on January 2, 2018. It acquired the trucks for $315,000 and placed them in service on July 18, 2019. The trucks are not subject to the limitation on luxury automobiles. Buckeye did not make the expensing election under 179 or take bonus depreciation on any property acquired before 2022. Accumulated tax depreciation through December 31, 2021, on these properties is as follows: Buckeye purchased two new depreciable assets this year. Stacy wants to deduct the maximum within the confines of the law and the limitations listed below. Where applicable, use the published depreciation tables to compute 2022 depreciation. On June 1, 2022, Buckeye acquired and placed into service new fixtures costing $79,000. The new fixtures are 7-year property. Buckeye made the 179 expensing election with regard to the new fixtures but elected out of bonus depreciation. On October 16, 2022, Buckeye acquired and placed into service new office furniture for $125,000. The new furniture is 7-year property. Buckeye did not make the 179 expensing election and elected out of bonus depreciation. Other expense information for Buckeye: Advertising $4,500 Supplies 800 Real estate taxes 7,200 Insurance 8,000 Annual state license 725 Employee benefit programs 2,000 Legal fees 1,000 Utilities 18,000 Repairs/maintenance 2,250 Business tax (charged to retailer) 3,200 You can ignore any sales taxes