The purpose of the Midterm Comprehensive Problem (CP) is to allow students to apply the knowledge gained thus far in the class and a tax return by hand, outside of CengageNOW.

As you finish this assignment you will be working towards mastery of the following course learning outcome and its components:

Construct a federal income tax return from given information.

1. 1. 1. Identify relevant data to include on a federal income tax return.
      2. Identify which form(s) and schedule(s) are necessary when completing a federal income tax return.
      3. Apply the federal income tax laws to given taxpayer scenarios.
      4. Compute the total for each federal income tax form or schedule.
      5. Compute the federal income taxes due.
      6. Assemble the federal income tax return in the correct order.

ADALENE GIRARD Adalene Girard is 36 years old and has been divorced for several years. Adalene's social security number is 456- 32-9876 and she lives at 4562 W. 4880 S. Salt Lake City, UT 84145. Adalene is a manager at Glenwood Corporation. She received the following W-2 During 2022, Adalene's 2021 state income tax return was audited. As a result, she received a refund and received the 1099-G shown below. For 2020 and 2021 Adalene took the standard deduction. On the weekends, Adalene likes to play slot machines in Wendover, NV. She received a W-2G (not shown) for gambling winnings of $1,500. On February 3, 2022, Adalene's grandparents passed away. She received $50,000 in life insurance proceeds from her grandmother and her grandfather left her some real estate (undeveloped land) worth $72,000. Under the terms of their divorce decree, dated April 18, 2016, Adalene receives $600 per month from Victor. During 2022, Adalene spent some time on a jury and received a total of $117 in jury duty pay. Glenwood Corporation paid for the following expenses during 2022, on behalf of Adalene: Fees and membership dues to the American Management Association, $560. Group term life insurance premiums of $144 for a $45,000 policy. Onsite, employee-only, athletic facility, valued at $85 per month. $515 per month in health insurance premiums for full-year coverage under an employer-sponsored health plan. During the year, Adalene was in the hospital for some minor surgery. The bill was $13,100 of which the health insurance paid in full by the insurance company. Adalene received dividends (all qualified) of $500 from Utah Copper Corp. and municipal bond interest of $329 from Salt Lake County (Forms 1099 not shown). She also received the following Forms 1099.

Adalene is also a consultant and has a small consulting practice (Girard Consulting Services, business code 541600) that she operates on the cash basis. She issued all required Form(s) 1099 and the business is run out of her home. Her income and expenses for 2022 are as follows: Revenues 21,600 Expenses Advertising 1,450 Business gifts 450 Legal and professional fees 2,400 Liability insurance 1,850 Depreciation (see below) ? Supplies 2,620 Taxes & licenses 475 A review of the gift account details shows that Adalene gave a $30 gift to each of her 15 best clients. Adalene drove her 2016 Toyota Camry 4,800 miles for business (2,250 miles were driven between January and June and the remaining 2,550 miles were driven from July through December). The Camry was placed in service on 9/1/2016 and was driven a total of 15,172 miles for the year, with 5,200 commuting miles. Adalene uses the standard mileage method and has the required substantiation for her business mileage. Adalene does not know how much depreciation expense to record and would like you to calculate it for her and include the amounts on her return. She has the following information in her fixed asset records: 1. $3,940 in office equipment (a 5-year asset) was purchased on March 18, 2019. At the time of purchase, Adalene took bonus depreciation. The maximum that year was 100%. 2. $4,890 in office furniture was purchased on September 18, 2017. At the time of purchase, Adalene did not take any bonus depreciation, nor did she elect to expense the purchase under Section 179. She used MACRS 200%. 3. A new business computer was purchased on May 24, 2022 for $2,950. Adalene wants to take any bonus depreciation allowed on the computer and MACRS on any remaining basis. 4. Some additional office furniture was purchased on July 10, 2022 for $1,960. Adalene wants to take the maximum amount of depreciation possible. Adalene has one dedicated room in her home which she uses exclusively for business purposes. Her home office is 352 square feet and the total home is 3,200 square feet. The following expenses related to the entire home, and she would like to maximize her deductions: $28,000 in rent $950 in renter's insurance $2,850 in utilities $2,560 in repairs and maintenance Other information: Adalene does not have any interest in a foreign account. Adalene did not have any transactions involving virtual currency. Assume Adalene has no qualified business income. We will cover that in chapter 4. If Adalene has overpaid her taxes, she would like any overpayment refunded. If Adalene owes additional tax, you are not required to prepare Form 1040-V.

Other information: Adalene does not have any interest in a foreign account. Adalene did not have any transactions involving virtual currency. Assume Adalene has no qualified business income. We will cover that in chapter 4. If Adalene has overpaid her taxes, she would like any overpayment refunded. If Adalene owes additional tax, you are not required to prepare Form 1040-V.