Comprehensive Problem 4-2A Dr. George E. Beeper is a single taxpayer born on September 22, 1968. He lives at 45 Mountain View Dr., Apt. 321, Spokane, WA 99210. Dr. Beeper's Social Security number is 775-88-9531. Dr. Beeper works for the Pine Medical Group, and his earnings and income tax withholding for 2016 are: a Employee's social security number 775-88-9531 OMB No. 1545-0008 Safe, accurate, FAST! Use IRS e ~ file Visit the IRS website at www.irs.gov/efile b Employer identification number (EIN) 36-1389676 1 Wages, tips, other compensation 133,000.00 2 Federal income tax withheld 22,100.00 c Employer's name, address, and ZIP code Pine Medical Group 800 W. 7th Ave. Spokane, WA 92204 3 Social security wages 133,000.00 4 Social security tax withheld 7,347.00 5 Medicare wages and tips 133,000.00 6 Medicare tax withheld 1,928.50 7 Social security tips 8 Allocated tips d Control number 9 10 Dependent care benefits e Employee's first name and initial Last name George Beeper 45 Mountain View Drive, Apt #321 Spokane, WA 92210 Suff. 11 Nonqualified plans 12a See instructions for box 12 C o d e DD 5,700.00 13 Statutory employee Retirement plan Third-party sick pay 12b C o d e 14 Other 12c C o d e 12d C o d e f Employee's address and ZIP code 15State WA Employer's state ID number 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name Form W-2 Wage and Tax Statement 2016 Department of the TreasuryInternal Revenue Service Copy BTo Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. Dr. Beeper owns a rental house located at 672 Lake Street, Spokane, WA 99212. The house rents for $1,000 per month and was rented for the entire year. The following are the related expenses for the rental house: Real estate taxes $5,850 Mortgage interest 14,800 Insurance 2,100 Depreciation (assume fully depreciated) 0 Repairs 450 Maintenance 1,980 The house was purchased on July 5, 1983. Dr. Beeper handles all rental activities (e.g., rent collection, finding tenants, etc.) himself. In 2018, Dr. Beeper sold his primary residence as he wished to move to an apartment to avoid the maintenance and upkeep of a single-family home. Dr. Beeper's home sold on February 12, 2018 for $345,000 net after commissions. He acquired the home on June 3, 2000 for $260,000 and had made improvements of $10,000. Dr. Beeper was divorced in 2012. The divorce decree requires Dr. Beeper to pay his ex-wife, Meredith Gray (Social Security number 333-45-1234), $800 per month. Dr. Beeper made all his monthly alimony payments in 2018. Required: Complete Form 1040 and the schedules and forms provided for Dr. Beeper. The taxpayer had health coverage for the entire year. The taxpayer does not want to make contribution to the presidential election campaign. Do not complete Form 4562 for reporting depreciation. Make realistic assumptions about any missing data. If an amount box does not require an entry or the answer is zero, enter "0". If required, round any amount to the nearest dollar. Enter all amounts as positive numbers except for the following special instructions: If required, on Form 1040, line 17 and on Schedule E, on lines 21, 25, and 26, use the minus sign to indicate a loss. On Form 8582, if required, use the minus sign to enter a "loss" as a negative number on the lines 1d and 4. However, per the instructions on the tax return, enter all numbers in Part II as positive amounts.