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38. Beth R. Jordan lives at 2322 Skyview Road, Mesa, AZ 85201. She is a tax accountant with Mesa Manufacturing Company, 1203 Western Avenue, Mesa, AZ 85201 (Employer Identification Number 11-1111111). She also writes computer software programs for tax practitioners and has a part-time tax practice. Beth is single and has no dependents Beth was born on July 4, 1972, and her Social Security number is 123-45-6789. She wants to contribute $3 to the Presidential Election Campaign Fund. ollowing information is shown on Beth's 2018 Wage and Tax satement CHAPTER 12 Tax Credits and Paymes 12-35 Form W-2). Wages, tips, other compensation Federal lncome tax withheld Social Security wages Social Security tax withheld Medicare wages and tips Medicare tax withheld State State wages, tips, etc State income tax withheld $65.000.00 10,50000 4030.00 942 50 Arkzona 65,000.00 1,954.00 15 16 other 2018 transactions include the followin ived interest of $1.300 from Arzona Federal Savings and loan and S400 State Bank. Each financial institution reported the from Arizona a Form 1 1009-INT. She received qualified dividends of $800 from Blue Corporation, Green Corporation, and $650 from Orange Corporation. Each corporation interest incosme ed Beth's dividend payments on a Form 1099-DIV h received a $1,100 income tax refund from the state of Arizona on April 29, 6 on her 2017 Federal income tax return, she reported total itemized deductions 16. On s8 200, which included $2,200 of state income tax withheld by her employer Fees earned from her part-time tax practice totaled $3,800. She paid $600 to have returns processed by a computerized tax return service. on February 8, Beth bought 500 shares of Gray Corporation common stock for the tax a share. On September 12, Beth sold the stock for $14 a share. Reth bought a used sport utility vehicle for $6,000 on June 5. She purchased the sehicle from her brother-in-law, who was unemployed and was in need of cash. On mber 2, she sold the vehicle to a friend for $6500. Novemb On January 2, Beth acquired 100 shares of Blue Corporation common hare. She sold the stock on December 19 for $55 a share. Beth records revenues of $16,000 from the sale of a software program she devel- Beth incurred the following expenditures in connection with her software development business. Cost of personal computer (100% business use) Cost of printer (100% business use) Furniture Supplies Fee paid to computer consultant $7,000 2.000 3.000 650 3,500 Beth elected to deduct the maximum portion of the cost of the computer, printer, and furniture allowed under the provisions of 179, These items were placed in service on January 15 and used 100 percent in her business Although her employer suggested that Beth attend a convention on current devel- opments in corporate taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending the conference. The $1,420 included $200 for business meals. real prop- Valley National paid Deductions and Credits PARTS Beth paid $300 for prescription medicines and $2,875 in physician r. Professional bills. Medical insurance premiums were paid by her employer. Beth erty taxes of $1,766 on her home. Interest on her home mortgage at Vd real Bank was $3,845, and interest paid to credit card companies totalecd saey N the year. She Beth contributed s2.080 to various qualified charities during the yea s320 insurance policy Beth paid $1,000 in estimated Federal income taxes througho Part 1-Tax Computation Compute the 2018 net tax payable or refund due for Beth R. Jordan. Part 2-Tax Planning Beth is anticipating significant changes in her life in 2019, and she has to estimate her taxable income and tax liability for that year. She just red was covered for the entire year by Mesa Manufacturing's health i ked you received word adoption will be finalized in 2019 and that she will incur approximately shat the adoption expenses. In addition, she expects to incur approximately $32000 that she has been qualified to adopt a two-year-old daughter. Beth expw and dependent care expenses relating to the care of her new daughterchil enable her to keep her job at Mesa Manufacturing $3,500 of of which will has decided to discontinue her two part-time jobs (i.e., the part-time her software business), and she will cease making estimated incom However, with the additional demands on her time because of her tax practice a In your computations, assume that all other income and expenitursill at approximately the same levels as in 2018. s will remain