Comprehensive Problem $8-1$

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 $$100,000($the home$$s 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. Complete Trish$$s Schedule C$,$ Form $8829,$ Form $4562,$ and Schedule SE$.$

Make realistic assumptions about any missing data.

Enter all amounts as positive numbers.

If an amount box does not require an entry or the answer is zero, enter $"0".$

If required round any dollar amount to the nearest dollar.

W$2$

Trish also earned wages as express delivery manager in $2023.$ Her Form W$-2$ is below.

a Employee's social security number

$123-45-6789$ 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$)$

$31-34534571$ Wages, tips, other compensation

$110,000\mathrm{.}002$ Federal income tax withheld

$24,200\mathrm{.}00$

c Employer's name, address, and ZIP code

Lightning and Juno Express

$100$ Didactylus Drive

Las Vegas, NV $890323$ Social security wages

$110,000\mathrm{.}004$ Social security tax withheld

$6,820\mathrm{.}00$

$5$ Medicare wages and tips

$110,000\mathrm{.}006$ Medicare tax withheld

$1,595\mathrm{.}00$

$7$ Social security tips

$8$ Allocated tips

d Control number

$910$ Dependent care benefits

e Employee's first name and initial

Trish Himple

$350$ W$.$ Lake Mead Blvd$.$

North Las Vegas, NV $89032$ Last name

Suff. $11$ Nonqualified plans $12$a See instructions for box $12$

C

o

d

e

W

$1,000\mathrm{.}00$

$13$

Statutory employee Retirement plan Third$-$party sick pay

$$

$12$b

C

o

d

e

D

$3,000\mathrm{.}00$

$14$ Other

$12$c

C

o

d

e

$12$d

C

o

d

e

f Employee's address and ZIP code

$15$ State

NV 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 $2023$

Department of the Treasury$$Internal Revenue Service

Copy B$$To Be Filed With Employee's FEDERAL Tax Return.

This information is being furnished to the Internal Revenue Service.

Complete Trish$$s Schedule C$,$ Form $8829,$ Form $4562,$ and Schedule SE$.$