See attached tax document file requires solution

ACC UNIT 4 DBQ 1 2 3 Now that we are half way there....we like to do a mid-mod check in to see how it's going. Please address the following questions: 1. 2. 3. 4. What is working well? What can we do to improve? What is your biggest learning/insight so far? What do you wish we had spent more time on? Unit 4 - Research Sites Share here the sites you have found and are using for these assignments. Share what is working well and what is frustrating as you are working on the research. Unit 4 - Tax Research Please read the following case and identify the relevant facts and identify the tax issues that should be researched in order to give proper advice. Discuss which issues should take precedence and what information you would need to have all the relevant facts. Arthur, an accountant at a prestigious firm NYC and his wife Bertha lived an interesting life in a rent controlled apartment on the Upper East Side of Manhattan. Bertha was not employed and attended a local University where she received scholarships for her participation in theatrical and musical activities that promoted the University. Arthur and Bertha paid only $500 per month in the rent controlled apartment, residing in the unit since 1975. In 2006, Arthur suffered a significant brain injury during a game of \"twister\" at the annual company picnic. In February of 2007, Arthur received a gift of $150,000 from the firm and was appointed honorary partner. Arthur also received written permission to take a paid sabbatical until he was ready (if ever) to resume his duties as an accountant. The Firm also gave Arthur a gold watch at their annual Holiday party. In late 2007, Arthur secured a judgment award against the manufacturer of the game \"twister\" in the amount of $350,000. 10% of the judgment had to be paid to his attorney in cash. Payment was made in stock from the company, which was far less than similar plaintiffs had received. Bertha felt that her husband had lost them millions by not being tougher. Arthur incurred more than 10 percent of their adjusted gross income for medical and cosmetic surgery expenses, wigs, aroma therapy, hypnotic trance sessions all related to his brain injury. Bertha also incurred more than 10 percent of their adjusted gross income for extensive cosmetic surgery to enhance her appearance. In a joint tax return for 2007, Arthur and Bertha reported a loss of $1,550,000 due to Arthur's lack of gumption in going after the manufacturer of the game 'twister\". Unknown to Arthur, Bertha had extorted (in 2007) $1,500 worth of meals and entertainment from the Managing partner of the Accounting firm. Furthermore, unbeknownst to Arthur, Bertha had traded services (in 2007) with her cousin, a costume designer, wherein Bertha received $63,000 worth of vintage clothing; which Bertha intended to use in the future for her proposed business as a performer. Arthur and Bertha living in NYC did not need or own a car; therefore, they had to walk or use public transportation to get to their jobs and other activities. In January of 2008 the manufacturer of the game \"twister\" went bankrupt, and all of its stock was declared worthless. On June 10, 2008, Arthur lost his gold watch while scuba diving in the Atlantic Ocean. He had been attempting to salvage sunken treasure from a 210-foot Civil War Era steamship wrecked in 1865. There was no treasure. At the end of 2008 Bertha decided Arthur was a lost cause and divorced him asking for half of his estate