Question
Richard and Tina Bench live at 230 Main Street, Platteville, WI 53818, and their Social Security numbers are 233-43-4523 and 342-22-3476. They have one child,
Richard and Tina Bench live at 230 Main Street, Platteville, WI 53818, and their Social Security numbers are 233-43-4523 and 342-22-3476. They have one child, Tony, who is eight years old. Tonys Social Security number is 456-34-6578. Richard's salary from a night guard job and income tax withholding for the year are as follows:
Wages $56,000
Interest earned on savings account $1,600
Federal income tax withheld $5,000
State income tax withheld $2,000
Richard contributed $4,000 to his IRA account. The Benches moved from Florida to Wisconsin in the beginning of the current year. Their moving expenses include (all non-reimbursed):
Cost of moving furniture $3,500
Transportation costs $400
Lodging $200
Meals $160
House hunting trip before the move $900
Tina started and managed the Istanbul Caf. Revenue and expenses for the year are presented below:
Revenue $70,000
Beginning inventory of merchandise inventory $0
Ending inventory of merchandise inventory $3,500
Merchandise supplied purchased $17,000
Wages $8,500
Utilities $1,500
Rent expenses $7,800
Advertisement expenses $2,000
Payroll taxes $680
Subcontractor $2,200
Other $500
Richard and Tina own a house in Platteville that they rent to the students for $800 per month. They incur the following expenses for the year (11 months):
Real estate taxes $3,000
Mortgage interest $4,200
Repairs $400
Depreciation $3,000
Prepare Form 1040 for the most current year for the Benches along with Schedules C and E. Submit the tax return to your instructor for evaluation.
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