Tax return problem 4 (9 points) Instructions: Please complete the 2019 federal income tax return for Janice Morgan Submit the tax returns generated from tax software before the deadline (Nov. 19 at 11:59pm on Moodle) Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In January 2019. Janice opened her own office located at 2751 Waldham Road, Pleasant Hill, NM 88135. She called her business Writers Anonymous, Janice is a cash basis taxpayer. She lives at 132 Stone Avenue, Pleasant Hill, NM 88135. Her Social Security number is 123-45- 6782. Janice's parents continue to provide health insurance for her under their policy, Janice wants to contribute to the Presidential Election Campaign Fund. During 2019, Janice reported the following income and expense items connected with her business. Income from sale of articles $85,xxx Rent 16,500 Utilities 7,900 Supplies 1,800 Insurance 5,000 Travel (including meals of $1,200) 3,500 Janice purchased and placed in service the following fixed assets for her business. Janice does not elect immediate expensing under $ 179 and does not claim any available additional first-year depreciation Furniture and fixtures (new) costing $21.xxx (Last 3 digits of your student ID) on January 10 Computer equipment (new) costing $12,400 on July 28. Janice's itemized deductions include: State income tax $2,950 Home mortgage interest paid to First National Bank 6,000 Property taxes on home 2,500 Charitable contribution to her alma mater, State College 1,200 Janice did not keep a record of the sales tax she paid. The amount from the sales tax table is $437 Janice reports interest income of $4,000 on certificates of deposit at Second National Bank. Janice makes estimated tax payments of $4,000 for 2019. Janice had the following activity in their brokerage account during the year (all transactions were reported on a Form 1099-B. Basis information on each stock sale was reported to the IRS): Sold 2,000 shares of Microsoft 7/1/19 $22,500 Sold 75 shares of Apple, Inc. 4/15/19 $28,750 Sold 300 shares of Cooper Tire 10/14/19 $14,700 Sold 50 shares of Union Pacific 1/7/19 $2,750 Relevant tax basis/holding period information related to sales of securities in the current year: Purchased 2,000 shares of Microsoft on 5/1/19 for $21,000 Purchased 200 shares of Apple, Inc. on 3/8/16 for $90,000 Purchased 300 shares of Cooper Tire on 1/12/15 for $9,000 Purchased 100 shares of Union Pacific on 9/5/18 for $6,000 Janice has a $13,000 long-term capital loss carryover from the prior tax year. Compute Janice Morgan's 2019 Federal income tax payable (or refund due). If you use tax forms for your computations, you will need Forms 1040 and 4562 and Schedules A, B, C, and D. Suggested software: ProConnect Tax Online. Tax return problem 4 (9 points) Instructions: Please complete the 2019 federal income tax return for Janice Morgan Submit the tax returns generated from tax software before the deadline (Nov. 19 at 11:59pm on Moodle) Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In January 2019. Janice opened her own office located at 2751 Waldham Road, Pleasant Hill, NM 88135. She called her business Writers Anonymous, Janice is a cash basis taxpayer. She lives at 132 Stone Avenue, Pleasant Hill, NM 88135. Her Social Security number is 123-45- 6782. Janice's parents continue to provide health insurance for her under their policy, Janice wants to contribute to the Presidential Election Campaign Fund. During 2019, Janice reported the following income and expense items connected with her business. Income from sale of articles $85,xxx Rent 16,500 Utilities 7,900 Supplies 1,800 Insurance 5,000 Travel (including meals of $1,200) 3,500 Janice purchased and placed in service the following fixed assets for her business. Janice does not elect immediate expensing under $ 179 and does not claim any available additional first-year depreciation Furniture and fixtures (new) costing $21.xxx (Last 3 digits of your student ID) on January 10 Computer equipment (new) costing $12,400 on July 28. Janice's itemized deductions include: State income tax $2,950 Home mortgage interest paid to First National Bank 6,000 Property taxes on home 2,500 Charitable contribution to her alma mater, State College 1,200 Janice did not keep a record of the sales tax she paid. The amount from the sales tax table is $437 Janice reports interest income of $4,000 on certificates of deposit at Second National Bank. Janice makes estimated tax payments of $4,000 for 2019. Janice had the following activity in their brokerage account during the year (all transactions were reported on a Form 1099-B. Basis information on each stock sale was reported to the IRS): Sold 2,000 shares of Microsoft 7/1/19 $22,500 Sold 75 shares of Apple, Inc. 4/15/19 $28,750 Sold 300 shares of Cooper Tire 10/14/19 $14,700 Sold 50 shares of Union Pacific 1/7/19 $2,750 Relevant tax basis/holding period information related to sales of securities in the current year: Purchased 2,000 shares of Microsoft on 5/1/19 for $21,000 Purchased 200 shares of Apple, Inc. on 3/8/16 for $90,000 Purchased 300 shares of Cooper Tire on 1/12/15 for $9,000 Purchased 100 shares of Union Pacific on 9/5/18 for $6,000 Janice has a $13,000 long-term capital loss carryover from the prior tax year. Compute Janice Morgan's 2019 Federal income tax payable (or refund due). If you use tax forms for your computations, you will need Forms 1040 and 4562 and Schedules A, B, C, and D. Suggested software: ProConnect Tax Online