ACCOUNTING $308$

TAX RETURN PROJECT #$1$

Lance H$.$ and Wanda B$.$ Dean are married and live at $431$ Yucca Drive, Santa Fe$,$ NM $87501.$

Lance works for the convention bureau of the local Chamber of Commerce, and Wanda owns her

own business $($an S$-$Corp$).$ They file a joint return.

Personal items:

Wages $/$ Salaries

Interest Income

Child support payments to John Allen

Alimony payments to John Allen

Lottery winnings

Federal income tax withholding

State income tax withheld

Wanda was previously married to John Allen, they divorced several years ago $($prior to $2018).$

Under the divorce decree, Wanda was obligated to pay alimony and child support to John. She

paid him $$20,000$ in alimony and $$9,000$ in child support, which agreed with the divorce decree.

Wanda is the owner of her own business. Throughout the year she earned $$30,000$ of ordinary

income from this business $($taxed as an S$-$Corp$),$ reported on a K$-1.$

Additionally, Lance and Wanda had:

$(1)$ Sale of LMN publicly traded stock on $2/15/2023$ for $$7,000($originally purchased for

$$11,000$ on $\frac{8}{15}\frac{?}{2022})$

$(2)$ Sale of QRS publicly traded stock on $10/15/2023$ for $$19,000($originally purchased for

$$8,000$ on $\frac{12}{15}\frac{?}{2021})$

$(3)$ Sale of a boat on $\frac{5}{15}\frac{?}{2023}$ for $$10,000$ used for personal recreation $($originally

purchased for $$20,000$ on $\frac{6}{15}\frac{?}{2018})$

$(4)$ Wanda inherited publicly traded stock worth $$30,000$ from a deceased uncle on

September $30,2023$

$(5)$ Immediately after receiving this stock, Wanda sold it for $$30,000.$ This stock was

originally purchased by his uncle on January ${15}^{th},2020,$ for $$23,000$Lance H$.$ and Wanda B$.$ Dean are married and live at $431$ Yucca Drive, Santa Fe$,$ NM $87501.$ Lance works for the convention bureau of the local Chamber of Commerce, and Wanda owns her own business $($an S$-$Corp$).$ They file a joint return.