should include the following items, in the following order: 2021 Form 1040: U.S. Individual Income Tax Return (include Schedules 1 3, if applicable) 2021 Schedule C: Profit or Loss from Business 2021 Schedule SE: Self-Employment Taxes 2021 Form 4562: Depreciation and Amortization (remember to include the completed supporting excel spreadsheet

Client: Vera (& Jack) Hamilton Lakeside Oasis Gifts Schedule: Cash disbursements Date: December 31, 2020 Description Business space rent expense Wages paid to part-time employees Payroll taxes (for part-time employees) Liability & property insurance Purchases of miscellaneous office supplies Routine repairs Advertising Janitorial services Business Meals (with customers) Estimated federal tax payments Purchases of lake items for resale (inventory) Purchases of gift items for resale (inventory) Down Payment on new computer equipment Computer equipment payments Telephone & utilities Contribution to political campaign of friend running for city council Contibution to National Libertarian Party Occupational license Total cash disbursements Amount 14.000 26,300 1,980 5,000 490 1,250 1,400 2.600 260 6,500 43,150 5,120 1,000 1,600 1,300 500 1,000 850 114.300 Schedule: Property, plant and equipment Date: December 31, 2020 Tax depreciation Property Acquisition Date Cost Method Computer Equipment #1 2/1/17 2,800 MACRS 200% DB Furniture 3/1/17 7,000 MACRS 200% DB Display Cases 3/1/17 11,300 MACRS 200% DB Security System 5/1/17 8,500 MACRS 200% DB 9,900 MACRS 200% DB Computer Equipment #2 7/1/20 Additional notes: [1] No Section 179 election or bonus depreciation on assets purchased before 2020 [2] Maximize deduction for 2020 asset addition. [3] Computer Equipment #1 was sold on September 21, 2020. Class 5 7 5 7 5 # 2017 MACR 2020 Form 1040: U.S. Individual Income Tax Return (include Schedules 1-3, if applicable) -2020 Schedule C: Profit or Loss from Business -2020 Schedule D: Capital Gains and Losses (and Form 8949) -2020 Schedule SE: Self-Employment Taxes - 2020 Form 4562: Depreciation and Amortization (remember to include the completed supporting excel spreadsheet CLIENT TAX INFORMATION: "Lucky" Jack Hamilton comes to your office and asks you to prepare his 2020 federal income tax return. He provides you with the following information: Jack (SS# 111-00-7878) and Vera (SS# 111-99-8800) Hamilton are married and file a joint income tax return. Their address is 910 Granny Avenue, Lee's Summit, MO, 64086. Jack is employed as a blackjack dealer, and Vera operates a small, unincorporated shop selling lake souvenirs and supplies "Lakeside Oasis Gifts" (EIN 59-8884567, Business Identification Code 453220). She rents a small business space at 123 Leaf Street, Lee's Summit, MO, 64086. 1. Jack and Vera have a nine year-old son, Chance (SS# 111-99-2222). and they provide 100% of his support. Chance attends Samson Elementary School. 2. Jack's 2020 W-2 that he received from his employer is included in the tax information that he gives to you. He also included additional tax forms that he received. The following documents are available on Blackboard (Additional Client Info.pdf): .Jack's W-2 1099-INT from MNB Savings Bank -1099-INT from State of MO Water District (municipal bonds) 1099-DIV from Ace Corp stock . 1099-MISC from McDuffy & Sons 3. Vera's business generated gross receipts of $168,000 in 2020. During 2020, she wrote checks for $114,300 related to her business. Vera uses the cash method of accounting and she keeps a separate bank account for her business. An Excel spreadsheet that includes a detailed list of Vera's expenditures (and a template for computing tax depreciation) is available on Blackboard. 4. Vera began her Lakeside Oasis Gifts business in 2017 and purchased several assets during that year. She did not elect Section 179 expensing (and she elected out of bonus depreciation) at that time because her business was just beginning (with little cash inflow) and her accountant advised her that it would be better to stretch out the deductions over the depreciable lives of the assets. The assets are used 100% for business and have been depreciated using MACRS. The assets are listed on the tax depreciation schedule included with this list of Vera's expenditures (and a template for computing tax depreciation) is available on Blackboard. 4. Vera began her Lakeside Oasis Gifts business in 2017 and purchased several assets during that year. She did not elect Section 179 expensing (and she elected out of bonus depreciation) at that time because her business was just beginning (with little cash inflow) and her accountant advised her that it would be better to stretch out the deductions over the depreciable lives of the assets. The assets are used 100% for business and have been depreciated using MACRS. The assets are listed on the tax depreciation schedule included with this assignment. 5. In August 2020, Vera purchased computer equipment (#2) for Lakeside Oasis Gifts for $9,900. She paid $1,000 down and financed the balance. She has been making payments of $320/month since August 2020. Of the total payments made during 2020, $190 was for interest. 6. Additional business-related information: Vera received $350 on September 21, 2020, from the sale of old computer equipment (Computer Equipment #1 which was purchased in February 2017). 7. The Hamiltons" itemized deductions totaled $22,100 for 2020 (do not prepare Schedule A). 8. Jack's Aunt Doris gives each of her favorite nieces and nephews $1,000 every year. Jack receives $1,000 as a gift from Aunt Doris in December 2020. 9. During the year, the Hamiltons sold the following capital assets: Asset. Adjusted Basis Acquired Sold Selling price Golden stock 1-14-20 11-18-20 4,000 15,500 Glitz stock 11,900 Big Time stock 8-05-07 13,700 Ace Stock 1-18-12 12-17-20 6,100 3,500 Sail boat 11-13-14 3-31-20 8,000 11,700 Note: The Big Time stock was sold to Vera's sister. Note: The sailboat was used for personal recreation only. Note: None of the above transactions were reported on Form 1099-B HINTS: 3-12-12 3-16-20 13,400 4-24-20 9,200 Client: Vera (& Jack) Hamilton Lakeside Oasis Gifts Schedule: Cash disbursements Date: December 31, 2020 Description Business space rent expense Wages paid to part-time employees Payroll taxes (for part-time employees) Liability & property insurance Purchases of miscellaneous office supplies Routine repairs Advertising Janitorial services Business Meals (with customers) Estimated federal tax payments Purchases of lake items for resale (inventory) Purchases of gift items for resale (inventory) Down Payment on new computer equipment Computer equipment payments Telephone & utilities Contribution to political campaign of friend running for city council Contibution to National Libertarian Party Occupational license Total cash disbursements Amount 14.000 26,300 1,980 5,000 490 1,250 1,400 2.600 260 6,500 43,150 5,120 1,000 1,600 1,300 500 1,000 850 114.300 Schedule: Property, plant and equipment Date: December 31, 2020 Tax depreciation Property Acquisition Date Cost Method Computer Equipment #1 2/1/17 2,800 MACRS 200% DB Furniture 3/1/17 7,000 MACRS 200% DB Display Cases 3/1/17 11,300 MACRS 200% DB Security System 5/1/17 8,500 MACRS 200% DB 9,900 MACRS 200% DB Computer Equipment #2 7/1/20 Additional notes: [1] No Section 179 election or bonus depreciation on assets purchased before 2020 [2] Maximize deduction for 2020 asset addition. [3] Computer Equipment #1 was sold on September 21, 2020. Class 5 7 5 7 5 # 2017 MACR 2020 Form 1040: U.S. Individual Income Tax Return (include Schedules 1-3, if applicable) -2020 Schedule C: Profit or Loss from Business -2020 Schedule D: Capital Gains and Losses (and Form 8949) -2020 Schedule SE: Self-Employment Taxes - 2020 Form 4562: Depreciation and Amortization (remember to include the completed supporting excel spreadsheet CLIENT TAX INFORMATION: "Lucky" Jack Hamilton comes to your office and asks you to prepare his 2020 federal income tax return. He provides you with the following information: Jack (SS# 111-00-7878) and Vera (SS# 111-99-8800) Hamilton are married and file a joint income tax return. Their address is 910 Granny Avenue, Lee's Summit, MO, 64086. Jack is employed as a blackjack dealer, and Vera operates a small, unincorporated shop selling lake souvenirs and supplies "Lakeside Oasis Gifts" (EIN 59-8884567, Business Identification Code 453220). She rents a small business space at 123 Leaf Street, Lee's Summit, MO, 64086. 1. Jack and Vera have a nine year-old son, Chance (SS# 111-99-2222). and they provide 100% of his support. Chance attends Samson Elementary School. 2. Jack's 2020 W-2 that he received from his employer is included in the tax information that he gives to you. He also included additional tax forms that he received. The following documents are available on Blackboard (Additional Client Info.pdf): .Jack's W-2 1099-INT from MNB Savings Bank -1099-INT from State of MO Water District (municipal bonds) 1099-DIV from Ace Corp stock . 1099-MISC from McDuffy & Sons 3. Vera's business generated gross receipts of $168,000 in 2020. During 2020, she wrote checks for $114,300 related to her business. Vera uses the cash method of accounting and she keeps a separate bank account for her business. An Excel spreadsheet that includes a detailed list of Vera's expenditures (and a template for computing tax depreciation) is available on Blackboard. 4. Vera began her Lakeside Oasis Gifts business in 2017 and purchased several assets during that year. She did not elect Section 179 expensing (and she elected out of bonus depreciation) at that time because her business was just beginning (with little cash inflow) and her accountant advised her that it would be better to stretch out the deductions over the depreciable lives of the assets. The assets are used 100% for business and have been depreciated using MACRS. The assets are listed on the tax depreciation schedule included with this list of Vera's expenditures (and a template for computing tax depreciation) is available on Blackboard. 4. Vera began her Lakeside Oasis Gifts business in 2017 and purchased several assets during that year. She did not elect Section 179 expensing (and she elected out of bonus depreciation) at that time because her business was just beginning (with little cash inflow) and her accountant advised her that it would be better to stretch out the deductions over the depreciable lives of the assets. The assets are used 100% for business and have been depreciated using MACRS. The assets are listed on the tax depreciation schedule included with this assignment. 5. In August 2020, Vera purchased computer equipment (#2) for Lakeside Oasis Gifts for $9,900. She paid $1,000 down and financed the balance. She has been making payments of $320/month since August 2020. Of the total payments made during 2020, $190 was for interest. 6. Additional business-related information: Vera received $350 on September 21, 2020, from the sale of old computer equipment (Computer Equipment #1 which was purchased in February 2017). 7. The Hamiltons" itemized deductions totaled $22,100 for 2020 (do not prepare Schedule A). 8. Jack's Aunt Doris gives each of her favorite nieces and nephews $1,000 every year. Jack receives $1,000 as a gift from Aunt Doris in December 2020. 9. During the year, the Hamiltons sold the following capital assets: Asset. Adjusted Basis Acquired Sold Selling price Golden stock 1-14-20 11-18-20 4,000 15,500 Glitz stock 11,900 Big Time stock 8-05-07 13,700 Ace Stock 1-18-12 12-17-20 6,100 3,500 Sail boat 11-13-14 3-31-20 8,000 11,700 Note: The Big Time stock was sold to Vera's sister. Note: The sailboat was used for personal recreation only. Note: None of the above transactions were reported on Form 1099-B HINTS: 3-12-12 3-16-20 13,400 4-24-20 9,200