The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1 and 2. On September 1, Irene opened a retail store that specializes in sports car accessories. the name of the store is "Plus Two Cones." The store is located at 617 Main Street, Spokane, WA. The store uses the cash method of accounting. Her income and expenses for the year are as follows:

Sales of Merchandise $62,300 Inventory, September 1 (purchased in August) 62,500 Inventory, December 31 58,700 Purchases during the year 35,300 Sales returns and allowances 525 Store rental 7,500 Office Expense 1,400 Insurance 1,000 Advertising 3,000 Employee Wages 3,350 Payroll and other business taxes 505 Interest on Bank Loan to open store 2,740 Accounting fees 300 Utilities 1,000 Telephone 800 Maintenance 480 Miscellaneous 175

In addition to the above items, Irene incurred travel expenses to attend a seminar on sports car accessories. She spent $300 on airfare, $400 on lodging, $100 on a rental car, and $150 on meals. Irene has proper receipts for these amounts. Irene drove her 2005 Ford Explorer 1m459 miles for business related to Plus Two Cones. The Explorer was driven a total of 17,000 miles for the year. Included in the total 17,000 miles is 5,000 miles spent commuting to the store. Irene has the required substantiation for the business mileage. She uses the standard mileage method. In July, Ivan loaned a friend $7,000 so he could buy a car. Ivan's friend lost his job in 2014 and stopped making payments on the loan. He plans to start making payments again, however, with additional interest as soon as he has new employment.

Combine this new information about the incisor family with the information from Chapters 1 and 2 and complete a revised tax return for Ivan and Irene.