Trish's bookkeeper has provided the book-basis fixed asset roll forward to be used in computing the...

   

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Trish's bookkeeper has provided the book-basis fixed asset roll forward to be used in computing the depreciation (see separate tab). For tax purposes, Trish elected out of bonus depreciation in all years except 2019. 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. 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 2,500 sg, ft. Her 2014 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 2019 related to the entire home: Utilities $2,800 Cleaning 900 Insurance 1,100 Property taxes 2,000 Required: Complete Trish's Schedule C, Form 8829, and Form 4562 (as necessary). 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 123-45-67a9. Trish keeps her books on an accrual basis. The income and expenses for the year are: Gross sales $352,000 Returns and aliowances 4,000 Expenses: Beginning inventory (at cost) $ 85,000 Add: purchases Cost of goods available for sale Less ending inventory fat cost) Cost of goods soid Rent Insurance 101,000 $186,000 75,000 5i11,000 24,200 1,800 5,600 Legal and accounting fees Payroll 56,430 Payroll tares utilities 4,400 2,100 750 Office supplies Advertising 6,200 Trish's bookkeeper has provided the following book-basis fixed asset rollforward: Himple Retail Fixed Asset Rollforward 12/31/2019 (book basis) COST 2017 2018 2019 ACCUM NET BOOK DEPR IN SERVICE METHOD LIFE BASIS DEPR DEPR DEPR DEPR VALUE ASSET 2/15/2017 9,900.00 1,815.00 1,980.00 1,980.00 5,775.00 4,125.00 SL CASH REGISTER 9,900.00 1,815.00 1,980.00 1,960.00 5,775.00 4,125.00 2017 TOTAL ADDITIONS RETAIL FIXTURES 10/12/2018 SL 4,750.00 169.64 678.57 848.21 3,901.79 FURNITURE 10/12/2018 SL 3,900.00 139.29 557.14 696.43 3,203.57 ৪,650.00 308.93 1,235.71 1,544.64 7,105.36 2018 TOTAL ADDITIONS TOTAL 18,550.00 1,815.00 2,288.93 3,215.71 7,319.64 11,230.36 DELIVERY TRUCK 6/1/2019 SL 37,500.00 4,375.00 4,375.00 33,125.00 DESK AND CABINETRY 6/1/2019 SL 11,900.00 991.67 991.67 10,908.33 COMPUTER 6/1/2019 SL 2,800.00 326.67 326.67 2,473.33 2019 TOTAL ADDITIONS 52,200.00 5,693.34 5,693.34 46,506.66 TOTAL 70,750.00 1,815.00 2,288.93 8,909.05 13,012.98 57,737.02 Trish's bookkeeper has provided the book-basis fixed asset roll forward to be used in computing the depreciation (see separate tab). For tax purposes, Trish elected out of bonus depreciation in all years except 2019. 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. 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 2,500 sg, ft. Her 2014 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 2019 related to the entire home: Utilities $2,800 Cleaning 900 Insurance 1,100 Property taxes 2,000 Required: Complete Trish's Schedule C, Form 8829, and Form 4562 (as necessary). 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 123-45-67a9. Trish keeps her books on an accrual basis. The income and expenses for the year are: Gross sales $352,000 Returns and aliowances 4,000 Expenses: Beginning inventory (at cost) $ 85,000 Add: purchases Cost of goods available for sale Less ending inventory fat cost) Cost of goods soid Rent Insurance 101,000 $186,000 75,000 5i11,000 24,200 1,800 5,600 Legal and accounting fees Payroll 56,430 Payroll tares utilities 4,400 2,100 750 Office supplies Advertising 6,200 Trish's bookkeeper has provided the following book-basis fixed asset rollforward: Himple Retail Fixed Asset Rollforward 12/31/2019 (book basis) COST 2017 2018 2019 ACCUM NET BOOK DEPR IN SERVICE METHOD LIFE BASIS DEPR DEPR DEPR DEPR VALUE ASSET 2/15/2017 9,900.00 1,815.00 1,980.00 1,980.00 5,775.00 4,125.00 SL CASH REGISTER 9,900.00 1,815.00 1,980.00 1,960.00 5,775.00 4,125.00 2017 TOTAL ADDITIONS RETAIL FIXTURES 10/12/2018 SL 4,750.00 169.64 678.57 848.21 3,901.79 FURNITURE 10/12/2018 SL 3,900.00 139.29 557.14 696.43 3,203.57 ৪,650.00 308.93 1,235.71 1,544.64 7,105.36 2018 TOTAL ADDITIONS TOTAL 18,550.00 1,815.00 2,288.93 3,215.71 7,319.64 11,230.36 DELIVERY TRUCK 6/1/2019 SL 37,500.00 4,375.00 4,375.00 33,125.00 DESK AND CABINETRY 6/1/2019 SL 11,900.00 991.67 991.67 10,908.33 COMPUTER 6/1/2019 SL 2,800.00 326.67 326.67 2,473.33 2019 TOTAL ADDITIONS 52,200.00 5,693.34 5,693.34 46,506.66 TOTAL 70,750.00 1,815.00 2,288.93 8,909.05 13,012.98 57,737.02

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Required 1 Special Depreciation Allowance Bonus Depreciation 100 of the purchase cost of qualified b... View the full answer