The following document is required for submission:

Manual calculation on the excel spreadsheet

Use the following information to complete Phillip and Claire Dunphy's 2022 federal income tax return. If any information is missing, use reasonable assumptions to fill in the gaps. Ignore the alternative minimum tax for this problem.

Fact:

Gary Holstrum (SSN: 222-33-4444; DOB: 04/01/1975) and his wife Karen Holstrum (SSN: 555- 66-7777; DOB: 09/03/1975) have two children; Antonio (SSN: 888-99-7777; DOB: 02/04/2001) and Georgiana (SSN: 222-55-4444; DOB: 02/07/2003). Both Antonio and Georgiana are full- time students and qualify as federal income tax dependents of Gary and Karen. They live at: 1234 Canal Blvd, Thibodaux, LA 70301. Karen is a seventh-grade English teacher at the local middle school. Gary has his own manufacturing business.

Gary's business, Kool Beads, is an unincorporated manufacturer of Mardi Gras beads. The factory is located at 1003 LaPlace Avenue, New Orleans, LA 34455. Gary uses the accrual method of accounting in his business. He has the following transactions during the 2022 year:

Sales (less sales returns and allowances) $1,075,712

Purchases 600,000

Direct factory labor 175,000

Utilities 10,000

Insurance 60,000

Office Expenses 7,000

Administrative Salary Expenses 45,000 Legal Services 5,000

Travel Expenses (4,000 entertainment exp.) 20,000

Maintenance 18,000