Comprehensive Problems 6 Comprehensive Prob- lems 6 Richard McCarthy (born 2/14/64; Social Secu- rity number 100-10-9090) and Christine McCarthy (born 6/1/1966; Social security number 101-21-3434) have a 19-year-old son (born 10/2/99 Social Security number 555- 55-1212). Jack who is a full-time student at the University of Key West. The McCarthys also have a 12-year-old daughter (Social Secu- rity number 444-23-1212). Justine, that lives with them. Richard is the CEO at a national paper company. His 2018 Form W-2: SA W-2 2018 Christine is an optometrist and operates her own practice ("The Eyes of March") in town as a sole proprietor. The shop address is 1030 Morgan Highway, Clarks Summit, PA 18411 and the business code is 621320. Christine keeps her books on the accrual basis and her Comprehensive Problems 6 bookkeeper provided the following information: Gross sales $270,000 9,000 Returns Inventory: Beginning inventory Purchases $ 24,000 120,000 Ending inventory 30,000 Rent 24,000 11,000 Insurance 3,000 Profes- sional fees Payroll 37,000 Payroll taxes 2,800 Utilities 4,000 Office expenses 2,000 Deprecia- tion 5,000 2 Comprehensive Problems 6 The McCarthys have a nanny/housekeeper they paid $12,000 during 2018. They did not withhold income or FICA taxes. The McCarthys paid Pennsylvania stat unemploy- ment tax of $378 in 2018. Christine received a 2018 Form 1099-INT from the National Bank of Scranton that listed interest income of $23,400. Note that McCarthys reasonably allocate $1,278 to state income tax expense for purposes of the Net Investment Income tax. The McCarthys paid the following in 2018: $15,600 5,600 3,000 Home mortgage interest Property taxes Estimated state income tax payments Estimated Federal income tax payments Charitable contribu- tions (all cash) 11,000 7,600 Required: Complete the McCarthys" federal tax return for 2018. Use Form 1040, Schedule 1, Schedule 4, Schedule A, Schedule B, Sched- ule C, Schedule H, Schedule SE, Form 8959, and Form 8960 to complete this tax return. Make realistic assumptions about any missing 3 Comprehensive Problems 6 data and ignore any alternative minimum tax. Do not complete Form 4952, which is used for depreciation. RS a Empoyco cal security numer 100-10-9090 b Employer identication number Eing 32-5656567 Employer's name, address, and AP code Mufflin-Dunder Paper 302 Lackawanna Ave. Scranton, PA 18503 Safe, accurate, Visit the website at OMB No. 1545-cc0e FASTI UGO e-file www.is.goviabie 1 Wages, tips, other compensation 2 Federalncome tax withheld 230,000.00 66,000.00 social secumly wages - Soch security tax wintos 128.400.00 7,960.80 6 Modicaro wagu and tips 6 Medicare tax withold 230,000.00 3,605.00 7 Social secunty tips 8 Alocated tips d Control number Verification code 10 Dependent care benefits Last name Suff. 11 Nenqualified plans 12a See instructions for box 12 F 1 12b 13 DEY . Employee's first marne and initial Richard McCarthy 32 Sleepy Hollow Rd. Clarks Summit, PA 18411 APE pl Third-pery 14 Other 120 120 f Employce's address and ZIP code 15 Se Employer's state 10 number PA1234834 18 Local wages, tips, etc. 19 Local Income tax 20 Locatywne 16 State wages, 1p, etc. 17 State Income tax 230,000.00 13,800.00 Department of the Treasury - Intomal Rescue Service W-2 Wage and Tax 2018 Form Statement Copy B-To Be Flled With Employee's FEDERAL Tax Retum. This information is being furnished to the internal Revenue Service. 7:11 ally-production.s3.amazonaws.com - Private Comprehensive Problems 6 Richard McCarthy (born 2/14/64; Social Security number 100-10-9090) and Christine McCarthy (born 6/1/1966; Social security number 101-21-3434) have a 19-year-old son (born 10/2/99 Social Security number 555-55-1212), Jack who is a full-time student at the University of Key West. The McCarthys also have a 12-year-old daughter (Social Security number 444-23-1212), Justine, that lives with them. Richard is the CEO at a national paper company. His 2018 Form W-2: 100-10-9000 e-file TAT 33-3656567 230,000.00 66.000.00 129.400.00 Muftiin.Dunder Paper 302 Lackawan Ave. Scranton, PA 18503 7.900.00 3.605.00 230,000.00 Richard McCarthy 32 Sleepy Hollow Rd Clarks Summit, PA 18411 wewe PA 1234834 230,000.00 13.000,00 W-2 I 2018 Christine is an optometrist and operates her own practice ("The Eyes of March") in town as a sole proprietor. The shop address is 1030 Morgan Highway, Clarks Summit, PA 18411 and the business code is 621320. Christine keeps her books on the accrual basis and her bookkeeper provided the following information: Comprehensive Problems 6 Comprehensive Prob- lems 6 Richard McCarthy (born 2/14/64; Social Secu- rity number 100-10-9090) and Christine McCarthy (born 6/1/1966; Social security number 101-21-3434) have a 19-year-old son (born 10/2/99 Social Security number 555- 55-1212). Jack who is a full-time student at the University of Key West. The McCarthys also have a 12-year-old daughter (Social Secu- rity number 444-23-1212). Justine, that lives with them. Richard is the CEO at a national paper company. His 2018 Form W-2: SA W-2 2018 Christine is an optometrist and operates her own practice ("The Eyes of March") in town as a sole proprietor. The shop address is 1030 Morgan Highway, Clarks Summit, PA 18411 and the business code is 621320. Christine keeps her books on the accrual basis and her Comprehensive Problems 6 bookkeeper provided the following information: Gross sales $270,000 9,000 Returns Inventory: Beginning inventory Purchases $ 24,000 120,000 Ending inventory 30,000 Rent 24,000 11,000 Insurance 3,000 Profes- sional fees Payroll 37,000 Payroll taxes 2,800 Utilities 4,000 Office expenses 2,000 Deprecia- tion 5,000 2 Comprehensive Problems 6 The McCarthys have a nanny/housekeeper they paid $12,000 during 2018. They did not withhold income or FICA taxes. The McCarthys paid Pennsylvania stat unemploy- ment tax of $378 in 2018. Christine received a 2018 Form 1099-INT from the National Bank of Scranton that listed interest income of $23,400. Note that McCarthys reasonably allocate $1,278 to state income tax expense for purposes of the Net Investment Income tax. The McCarthys paid the following in 2018: $15,600 5,600 3,000 Home mortgage interest Property taxes Estimated state income tax payments Estimated Federal income tax payments Charitable contribu- tions (all cash) 11,000 7,600 Required: Complete the McCarthys" federal tax return for 2018. Use Form 1040, Schedule 1, Schedule 4, Schedule A, Schedule B, Sched- ule C, Schedule H, Schedule SE, Form 8959, and Form 8960 to complete this tax return. Make realistic assumptions about any missing 3 Comprehensive Problems 6 data and ignore any alternative minimum tax. Do not complete Form 4952, which is used for depreciation. RS a Empoyco cal security numer 100-10-9090 b Employer identication number Eing 32-5656567 Employer's name, address, and AP code Mufflin-Dunder Paper 302 Lackawanna Ave. Scranton, PA 18503 Safe, accurate, Visit the website at OMB No. 1545-cc0e FASTI UGO e-file www.is.goviabie 1 Wages, tips, other compensation 2 Federalncome tax withheld 230,000.00 66,000.00 social secumly wages - Soch security tax wintos 128.400.00 7,960.80 6 Modicaro wagu and tips 6 Medicare tax withold 230,000.00 3,605.00 7 Social secunty tips 8 Alocated tips d Control number Verification code 10 Dependent care benefits Last name Suff. 11 Nenqualified plans 12a See instructions for box 12 F 1 12b 13 DEY . Employee's first marne and initial Richard McCarthy 32 Sleepy Hollow Rd. Clarks Summit, PA 18411 APE pl Third-pery 14 Other 120 120 f Employce's address and ZIP code 15 Se Employer's state 10 number PA1234834 18 Local wages, tips, etc. 19 Local Income tax 20 Locatywne 16 State wages, 1p, etc. 17 State Income tax 230,000.00 13,800.00 Department of the Treasury - Intomal Rescue Service W-2 Wage and Tax 2018 Form Statement Copy B-To Be Flled With Employee's FEDERAL Tax Retum. This information is being furnished to the internal Revenue Service. 7:11 ally-production.s3.amazonaws.com - Private Comprehensive Problems 6 Richard McCarthy (born 2/14/64; Social Security number 100-10-9090) and Christine McCarthy (born 6/1/1966; Social security number 101-21-3434) have a 19-year-old son (born 10/2/99 Social Security number 555-55-1212), Jack who is a full-time student at the University of Key West. The McCarthys also have a 12-year-old daughter (Social Security number 444-23-1212), Justine, that lives with them. Richard is the CEO at a national paper company. His 2018 Form W-2: 100-10-9000 e-file TAT 33-3656567 230,000.00 66.000.00 129.400.00 Muftiin.Dunder Paper 302 Lackawan Ave. Scranton, PA 18503 7.900.00 3.605.00 230,000.00 Richard McCarthy 32 Sleepy Hollow Rd Clarks Summit, PA 18411 wewe PA 1234834 230,000.00 13.000,00 W-2 I 2018 Christine is an optometrist and operates her own practice ("The Eyes of March") in town as a sole proprietor. The shop address is 1030 Morgan Highway, Clarks Summit, PA 18411 and the business code is 621320. Christine keeps her books on the accrual basis and her bookkeeper provided the following information