Robert and Barbara Anderson are new clients to the firm. Robert is a consultant and Barbara is a homemaker.

We will be preparing their 2015 Federal income tax return. Robert and Barbara will be filing jointly and have the following personal information:

Taxpayers:

Robert Anderson Social Security: 556-48-8888 DOB: 1/17/1942

Barbara Anderson Social Security: 446-58-9999 DOB: 6/17/1956

Child:

Betsy Anderson Social Security: 123-88-9876 DOB: 1/5/1998

Address:

1234 Main Street

San Bernardino, CA 92401

They have given us the attached documents for their tax return. They have also supplied the following information (all items have proper documentation and substantiations):

Robert received a Schedule K-1 from Inland Consulting Inc., and Robert materially participated in the business for year.

Rental Property:

They bought and rented out a new residential property located at 3000 Main Street, San Bernardino, CA 92401 on 7/1/2014 for $280,000. The cost is broken down between land and building as follows:

Land $ 56,000

Building $224,000

They gave given us the following information related to the rental:

• Rental Income $12,000
• Repairs 220
• Mortgage Interest Expense 4,800
• Property Taxes 2,425

On their personal residence they paid $6,210 in property taxes and $10,050 in mortgage interest. On their autos, they paid $335 in DMV fees and the portion based on the value of the vehicles is $275. They made cash donations to the Autism Society of $10,000 and non-cash donations to Salvation Army of $350. They paid $1,520 to Franchise Tax Board on 4/15/2015 for the balance due on their 2014 California income tax return. They also made four equal payments of $2,000 each to the IRS for the tax year 2015 on 4/15/2015, 6/15/2015, 9/15/2015 and 12/15/2015 respectively. There is no overpayment applied from the previous tax year. Do not calculate the next year?s estimated tax or any late filing or late payment penalty or interest, if applicable.

Robert and Barbara Anderson are new clients to the firm. Robert is a consultant and Barbara is a homemaker. We will be preparing their 2015 Federal income tax return. Robert and Barbara will be filing jointly and have the following personal information: Taxpayers: Robert Anderson Barbara Anderson Social Security: 556-48-8888 Social Security: 446-58-9999 DOB: 1/17/1942 DOB: 6/17/1956 Child: Betsy Anderson Social Security: 123-88-9876 DOB: 1/5/1998 Address: 1234 Main Street San Bernardino, CA 92401 They have given us the attached documents for their tax return. They have also supplied the following information (all items have proper documentation and substantiations): Robert received a Schedule K-1 from Inland Consulting Inc., and Robert materially participated in the business for year. Rental Property: They bought and rented out a new residential property located at 3000 Main Street, San Bernardino, CA 92401 on 7/1/2014 for $280,000. The cost is broken down between land and building as follows: Land Building $ 56,000 $224,000 They gave given us the following information related to the rental: Rental Income Repairs Mortgage Interest Expense Property Taxes $12,000 220 4,800 2,425 On their personal residence they paid $6,210 in property taxes and $10,050 in mortgage interest. On their autos, they paid $335 in DMV fees and the portion based on the value of the vehicles is $275. They made cash donations to the Autism Society of $10,000 and non-cash donations to Salvation Army of $350. They paid $1,520 to Franchise Tax Board on 4/15/2015 for the balance due on their 2014 California income tax return. They also made four equal payments of $2,000 each to the IRS for the tax year 2015 on 4/15/2015, 6/15/2015, 9/15/2015 and 12/15/2015 respectively. There is no overpayment applied from the previous tax year. Do not calculate the next year's estimated tax or any late filing or late payment penalty or interest, if applicable. 556-48-8888 120000.00 Inland Consulting Inc 720 Carnegie Drive San Bernardino, CA 92408 Robert 120000.00 Anderson 1234 Main Street San Bernardino, CA 92401 120000.00 Charles Schwab 556-48-8888 Robert Anderson 1234 Main Street San Bernardino, CA 92401 Robert Anderson 1234 Main Street San Bernardino, CA 92401 Bank of America 556-48-8888 2,299.88 Inland Consulting Inc 720 Carnegie Drive San Bernardino, CA 92408 556-48-8888 Robert Anderson 1234 Main Street San Bernardino, CA 92401 Robert and Barbara Anderson are new clients to the firm. Robert is a consultant and Barbara is a homemaker. We will be preparing their 2015 Federal income tax return. Robert and Barbara will be filing jointly and have the following personal information: Taxpayers: Robert Anderson Barbara Anderson Social Security: 556-48-8888 Social Security: 446-58-9999 DOB: 1/17/1942 DOB: 6/17/1956 Child: Betsy Anderson Social Security: 123-88-9876 DOB: 1/5/1998 Address: 1234 Main Street San Bernardino, CA 92401 They have given us the attached documents for their tax return. They have also supplied the following information (all items have proper documentation and substantiations): Robert received a Schedule K-1 from Inland Consulting Inc., and Robert materially participated in the business for year. Rental Property: They bought and rented out a new residential property located at 3000 Main Street, San Bernardino, CA 92401 on 7/1/2014 for $280,000. The cost is broken down between land and building as follows: Land Building $ 56,000 $224,000 They gave given us the following information related to the rental: Rental Income Repairs Mortgage Interest Expense Property Taxes $12,000 220 4,800 2,425 On their personal residence they paid $6,210 in property taxes and $10,050 in mortgage interest. On their autos, they paid $335 in DMV fees and the portion based on the value of the vehicles is $275. They made cash donations to the Autism Society of $10,000 and non-cash donations to Salvation Army of $350. They paid $1,520 to Franchise Tax Board on 4/15/2015 for the balance due on their 2014 California income tax return. They also made four equal payments of $2,000 each to the IRS for the tax year 2015 on 4/15/2015, 6/15/2015, 9/15/2015 and 12/15/2015 respectively. There is no overpayment applied from the previous tax year. Do not calculate the next year's estimated tax or any late filing or late payment penalty or interest, if applicable. Tax telurn ProJegt Pet Kingdom's financlal statsn'lenk for 2014 are showm below. trncomo Statement January 1,2014. December 3tt 20{4 lncorne $ $ Gross seles $ales returns and allowancos Net sales Cost of goods sold 5,750,000 ._. (200,000) s,s50,000 (2,300,000) Gtoss profit lnterest income 3,250,000 20.000 3,270,000 Totalincome Expenses Salarles - Officers Janet Morton Kim Won Salaries - clerical and sales Taxes (state, loca!, and payroll) Repairs and maintenance lnterest expons6 Advertising Rental expense Deprmiation - book Charitable contributions Employee benefi t programs Premiums on offlcr$' life insurance Total expenses Nel income before taxes Federal income tax NeJ ineome per books $ 282,500 _- -2S2,500 _ 525,000 725,000 238,000 140,000 2'16,000 58,000 109,000 '106,000 38,000 60,000 40,000 Balanee $heet January 1,2014 1,200,000 Cash Accounts receivable 202,5i4 lnventories 2,750,000 Prepaid Federaltax Building and other depreciable assets Accumulated depreciation 5,455,000 0 (606,000) 812,500 140,000 Land Other assets Totalassets Liabllitiee and Equity Decemher 31, 2014 1,037,750 234,5m 3,030,000 11,500 5,455,000 (712,000) 812,500 124.977 _$__= ?lsrugp.January 1,2A14 December 31, 20!4 Accounts payable Other current liabilities 2,284,000 '175,000 1,731,250 155,000 Mortgages 4,625,000 4,575,000 Capitalstock 2,500,000 370,000 2,500,000 1.028.977 Retain earnings Total liabilities and equitY _q__gp54,qqg_ Tax Roturn Project On November 1, 2005, Janet Morton and Kim Wong formed Pet Kingdom, lnc,, to eell pet$ and pet suppties. Pertinent inforrnation regarding Fet King ie surnmarized as follows: r ' . r . r . r r Pet Kingdom's bueiness address is 1010 Northwest Parkway, Dallas, TX75225; its telephone number is 21 4-555-221 1. The employer identification number is 1 1-1 111111 , and the principal business activity code is 453910, Janet and Klrn eaoh own 50Yo of the common stock; Janot is presidenl and Kim is vice presfdent of the cornpany, No other class of stock is authorized. Bcth Janet and Kim are flllltime employees of Pet Kingdom. Janet's Social Secunity number is 123-45-6789, and Kim's Social $ecurity number is 987-65-4321. Pet Kingdom iE an accrual method, calendar year taxpayer. lnventories are determined using FIFO and the lower of cost or market method, Pet Kingdom uses the straight-line method of depreciation {or book purpos*s and accelerated depreoiation (MACR$) for lax purposes, Depreciation for tax purposes is $136,000. You are not pr.ovided enough detailed date to complete a Form 4562 (depreciation). The cornpany made payments in 2014 that would require it to flle Form(s) 1099, and it had filed all the required Form(s) 1099. The con-rpaily paid premiums 0n terrn life insurance polioies on lives of Janet Morton and Kim Wong; Pet Kingdom is the designated beneficiary. During 2014, Pet Kingdom rnade estirnated tax payments of $90,000 each quader to the lRS, Prepane Form 1'120 for Pet Kingdom for tax year 20'14. Tax telurn ProJegt Pet Kingdom's financlal statsn'lenk for 2014 are showm below. trncomo Statement January 1,2014. December 3tt 20{4 lncorne $ $ Gross seles $ales returns and allowancos Net sales Cost of goods sold 5,750,000 ._. (200,000) s,s50,000 (2,300,000) Gtoss profit lnterest income 3,250,000 20.000 3,270,000 Totalincome Expenses Salarles - Officers Janet Morton Kim Won Salaries - clerical and sales Taxes (state, loca!, and payroll) Repairs and maintenance lnterest expons6 Advertising Rental expense Deprmiation - book Charitable contributions Employee benefi t programs Premiums on offlcr$' life insurance Total expenses Nel income before taxes Federal income tax NeJ ineome per books $ 282,500 _- -2S2,500 _ 525,000 725,000 238,000 140,000 2'16,000 58,000 109,000 '106,000 38,000 60,000 40,000 Balanee $heet January 1,2014 1,200,000 Cash Accounts receivable 202,5i4 lnventories 2,750,000 Prepaid Federaltax Building and other depreciable assets Accumulated depreciation 5,455,000 0 (606,000) 812,500 140,000 Land Other assets Totalassets Liabllitiee and Equity Decemher 31, 2014 1,037,750 234,5m 3,030,000 11,500 5,455,000 (712,000) 812,500 124.977 _$__= ?lsrugp.January 1,2A14 December 31, 20!4 Accounts payable Other current liabilities 2,284,000 '175,000 1,731,250 155,000 Mortgages 4,625,000 4,575,000 Capitalstock 2,500,000 370,000 2,500,000 1.028.977 Retain earnings Total liabilities and equitY _q__gp54,qqg_ Tax Roturn Project On November 1, 2005, Janet Morton and Kim Wong formed Pet Kingdom, lnc,, to eell pet$ and pet suppties. Pertinent inforrnation regarding Fet King ie surnmarized as follows: r ' . r . r . r r Pet Kingdom's bueiness address is 1010 Northwest Parkway, Dallas, TX75225; its telephone number is 21 4-555-221 1. The employer identification number is 1 1-1 111111 , and the principal business activity code is 453910, Janet and Klrn eaoh own 50Yo of the common stock; Janot is presidenl and Kim is vice presfdent of the cornpany, No other class of stock is authorized. Bcth Janet and Kim are flllltime employees of Pet Kingdom. Janet's Social Secunity number is 123-45-6789, and Kim's Social $ecurity number is 987-65-4321. Pet Kingdom iE an accrual method, calendar year taxpayer. lnventories are determined using FIFO and the lower of cost or market method, Pet Kingdom uses the straight-line method of depreciation {or book purpos*s and accelerated depreoiation (MACR$) for lax purposes, Depreciation for tax purposes is $136,000. You are not pr.ovided enough detailed date to complete a Form 4562 (depreciation). The cornpany made payments in 2014 that would require it to flle Form(s) 1099, and it had filed all the required Form(s) 1099. The con-rpaily paid premiums 0n terrn life insurance polioies on lives of Janet Morton and Kim Wong; Pet Kingdom is the designated beneficiary. During 2014, Pet Kingdom rnade estirnated tax payments of $90,000 each quader to the lRS, Prepane Form 1'120 for Pet Kingdom for tax year 20'14