Refer to the facts in Problem I:10-47 for John and Ellen Brite. The following information is also available for them:

• The business uses the accrual method and did not make any payments that would require to be filed. It has used the cost method to value inventory for many years.

• John and Ellen do not have any transactions involving digital assets.

Complete the Brites’ 2022 Form 1040, Schedules 1, 2, C, and SE, and Forms 4562, 4797, and 8995.

Data From Problem 10-47

Data From Form 1040

Data From Form  4562

Data From Form 4797

Data From Form 8995

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1:10-47 John and Ellen Brite are married, file a joint return, and are less than 65 years old. They have no dependents and claim the standard deduction. John owns an unincorporated specialty elec- trical lighting retail store, Brite-On. Brite-On had the following assets on January 1, 2022: Assets Old store building purchased April 1, 2007 Equipment (7-year recovery) purchased January 10, 2017 Inventory valued using FIFO method: 4,000 light bulbs Cost $100,000 30,000 $5/bulb Brite-On purchased a competitor's store on March 1, 2022, for $206,000. The purchase price included the following: New store building Land Equipment (5-year recovery) Inventory: 3,000 light bulbs $115,000 (FMV) 28,000 (FMV) 45,000 (FMV) $ 6/bulb (cost) On June 30, 2022, Brite-On sold the 7-year recovery period equipment for $12,000. Brite-On leased a car for $860/month beginning on June 1, 2022. The car is used 100% for business. Brite-On sold 8,000 light bulbs at a price of $15/bulb during the year. Also, Brite-On made additional purchases of 4,000 light bulbs in August 2022 at a cost of $7/bulb. Brite-On had the following revenues (in addition to the sales of light bulbs) and additional expenses: Service revenues Interest expense on business loans Auto expenses (gas, oil, etc.) Taxes and licenses Utilities Salaries $94,000 6,000 4,800 3,300 2,800 36,000