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Comprehensive Problem One Noah and Joan Arc's Tax Return Noah and Joan Arc live with their family in Dayton, OH. Noah's Social Security number is 434-11-3311. Noah was bom on February 22, 1985 and Joan was born on July 1, 1986. Both enjoy good health and eyesight. Noah owns and operates a pet store and Joan is a firefighter for the city of Dayton. 1. The Arcs have two children, a son named Shem (Social Security number 598-01- 2345), born on March 21, 2013, and a daughter named Nora (Social Security number 554-33-2411), born on December 3, 2016. 2. Joan and Noah brought a folder of tax documents located. 3. Noah's pet store is located at 1415 S. Patterson Blvd, Dayton, OH 45409. The name of the store is 'The Arc," and its taxpayer identification number is 95-9876556. Since you handle Noah's bookkeeping, you have printed the income statement from your Quickbooks software. The Arc did not claim the COVID-related provisions for the employee retention credit or sick and family leave credits but Noah did defer his self- employment taxes related to The Arc. He estimates 77.5 percent of the profits can be allocated to the period March 27, 2020 through December 31, 2020, 4. Detail of The Arc's meals and entertainment $ 400 Meals associated with business travel 300 Arc employee holiday party 100 Overtime meals for employees 600 Sports tickets for entertaining large customers $ 1,400 5. Travel costs are business related and do not include meals. 6. Noah and Joan paid the following amounts during the year (all by check): Political contributions $ 250 5,025 Church donations (for which a written acknowledgment was received) Real estate taxes on their home 2.400 Medical co-pays for doctor visits 700 Mortgage interest for purchase of See Form 1098 home Tax return preparation fees 350 Credit card interest 220 Automobile insurance premiums 600 Uniforms for Joan 6.000 Contribution to Noah's individual retirement account (made on April 1. 2021) 7. Noah has a long-term capital loss carryover from last year of $2.313. & Noah and Joan own a condo and use it as a rental property. The condo is located at 16 Oakwood Ave, Unit A. Dayton, OH 45409. Noah provides the management Services for the rental including selection of tenants, maintenance, repairs, rent collection, and other services as needed. On average. Noah spends about 2 hours per week on the rental activity. The revenue and expenses for the year are as follows: Rental income $14.000 Insurance 600 Interest expense 5,700 Property taxes 1.000 Miscellaneous expenses 700 The home was acquired for $82.500 in 2004. No improvements have been made to the property 9. The Arcs paid Ohio general sales tax of $1,076 during the year. 10. The Arcs received a $3,400 EIP in 2020 Required. You are to prepare the Arc's federal income tax return in good form, signing the return as the preparer. Do not complete an Ohio State income tax retum. Make realistic assumptions about any missing data that you may need. The following forms and schedules are required: cage.com 10. The Arts received a $3.400 2000 Required: You are to prepare the Arcted motum in good from the return as the rear Do not complete an Ohio State income to Me ons about any data that you may need. The following form and sche 3 of 6 Form 100 Sche Schedule Sche Form Sche Form 612 Sche Form300 Scho Sche Daina Cola Gan The W Schat Note: The form included in Appendix De provided for the student to work on only one of the two additional comprehensive probleme desired addition forms may be ned from this website at www.no yuyor OLLS 130 PM W-2 2020 Charlotte Squab Financial Services ent Charlotte Squab Financial Services Now Vuk, NY 10005 Joan and Noah Are 1. DOH45400 SENS- Doe D1,20 Substitute 1099 Statement Co O De Powe 200 0.00 00.00 100 hp SOY 335.00 hed CORRECTED Mortgage 2020 Chase Mortgage 100 Park Avenue New York, NY 10017 Statement 10.105.00 P 274.700.00 13-4296127 434-11-3311 03132011 Noah and Joan Asc 1265 W. Riverview Avenue Dayton, OH 45402 ROUNDUP DAY CARE CENTER 245 N. WILKINSON STREET DAYTON, OH 45403 January 12, 2021 Joan and Noah Arc 1265 W. Riverview Avenue Dayton, OH 45402 Dear Joan and Noah Thank you for a great 2020 at Roundupi We appreciate your patronage during the year and hope to continue to provide excellent service for Nora in 2020. We have provided the tax information for calendar year 2020 below. Please let us know if you need any additional information Sincerely, Charles Burgundian Charles F. Burgundian Executive Director, Roundup Day Care EIN 54-0983456 Date of service January 1, 2020 - December 31, 2020 Amount Paid $3.000.00 Child Nora Arc 145,500.00 143300.00 62.400.00 B11 The Arc 95-9876556 Income Statement For the Year Ended December 31, 2020 Revenue: Gross Sales Los Sales Reture and Alowances Net Sales Cost of Goods Sold: Beginning inventory $ 10.250.00 Add Purchases 2.150.00 72.40000 Les Ending Inventory 10.000.00 Cost of Goods Sold Gross Profit (Loss) Expenses: Dues and Subscription Estimated Federal Tax Payments 7.500.00 Estimated State Tax Payments 3.800.00 Insurance 3.960.00 Meals and Entertainment Miscellaneous Payroll Taxes 3.330.00 Professional Foos 1.710.00 Rent 8.420,00 Travel 1.230.00 Utili 1.250,00 Vehicle Expenses Wages 25.170.00 Total Expenses Net Operating Income 58.200.00 $ 22,900.00