Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Trish Himple owns a retail family clothing store. Her store is located at 4 3 2 1 Heather Drive, Henderson, NV 8 9 0 0

Trish Himple owns a retail family clothing store. Her store is located at 4321 Heather Drive, Henderson, NV 89002. Her employer identification number is 95-1234321 and her Social Security number is 123-45-6789. Trish keeps her books on the cash basis. The income and expenses for the year are:
Gross sales $345,000
Returns and allowances 14,000
Expenses:
Beginning inventory (at cost) $ 87,000
Add: purchases 100,000
Cost of goods available for sale $187,000
Less: ending inventory (at cost)72,000
Cost of goods sold $115,000
Rent 24,000
Insurance 3,000
Legal and accounting fees 5,000
Payroll 60,000
Payroll taxes 5,000
Utilities 2,000
Office supplies 800
Advertising 6,000
The truck is not considered a passenger automobile for purposes of the luxury automobile limitations.
Trish also has a qualified home office of 250 sq. ft. Her home is 2,000 sq. ft. Her 2018 purchase price and basis in the home, not including land, is $100,000(the homes market value is $150,000). She incurred the following costs in 2023 related to the entire home:
Utilities $3,000
Cleaning 1,000
Insurance 1,100
Property taxes 2,000
Required:
For tax purposes, Trish elected out of bonus depreciation in all years except 2023. She did not elect immediate expensing in any year. The tax lives of the assets are the same as the book lives shown in the fixed asset schedule above.
Please Complete Trishs Schedule C, Form 8829, Form 4562, and Schedule SE.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Research Methods For Accounting And Finance Global Management Series

Authors: Audrey Paterson, Kevin D. Ogorman, David Leung, Robert Macintosh, William Jackson

1st Edition

1910158895, 978-1910158890

More Books

Students also viewed these Accounting questions