1. Your last client, Dr. George Beeper, needs you to prepare his 2020 Form 1040. This question corresponds to Comprehensive Problem 4-2A in your textbook. (60 points)

• To complete this return, you need to prepare Form 1040; Schedule 1; Schedule E; and Form 8582.
• Prepare Schedule E before Form 8582.
• Check Figure:Form 8582, line 7 is $124,500.
• The alimony Dr. Beeper pays is deductible.
• You have 5 check works on this question.
• Check Figure:line 11, Form 1040 (AGI) is $111,750.

\fForm 1040 Complete Dr. Beeper's Form 1040. Form Denamnent ol the Treasuryilntemal Revenue senice (99) 140 U.S. Individual Income Tax Return 2020 OMB No. 15450074 IRS use Only Filing Status Single V \\/ Your first name and middle initial Last name Your social security number George E. Beeper 7757887953 1 If JDlFIt return. spouse's first name and middle initial Last name Spouse's social security number Home address (number and street). If you have a F.O. box. see Instructions. Apt. no. Presidential Election Campaign 45 Mountain View Drive 321 Check here if you. or your spouse if City. town, or post office. If you have a foreign address, also complete State ZIP code ling jointly, want $3 to go to this fund. Checking a box below will not spaces below. WA 99210 Spokane change your tax or refund. None ' V Foreign country name Foreign province/state/tountry Foreign postal code At any time during 2020, did you receive, sell, send, exchange, or othemise acquire any nancial interest in any virtual No v V currency? Standard _ Someone can claim: None ' V Deduction You: None - J A e Blindness g / Spouse: None ' -/ Dependents (see instructions): (2) Social security (3) Relationship (4) J if qualifies for (see instructions): If more than four (1) First name Last name number to You Child tax credit Credit for other dependents dependents, see u n instructions and check here D o D D o o o o l. Wages, salanes. tips. etc. Attach Form(s) W72 .............................. 1 Attach , 2a Tarexempt interest . . la b Taxable interest .......... 2b Sch. B If required. 33 Qualied dividends . . . 3a b Ordinary dividends ........ 3b 4a IRA distributions ..... 4a b Taxable amount .......... 4|] 5a Pensions and annuities 5a d Taxable amount .......... 5b Standard 6a Social security benets 6a b Taxable amount .......... ob Deduction for ? Ca ital ain or loss . Attach Schedule D if re uired. If not re uired, check here. . . b D X Married ll-\"9 8 Other income from Schedule 1, line 9 .................................... 3 separately, $12,400 9 Add lines 1, 2b, 3b, 4b, 5b, ED, 7, and S. This is yourtotal income ............. b 9 . Married filing jointly or 10 Adjustments to income: Qualifying a From Schedule 1, line 22 .......................... 10a widow(er). $24,300 b Charitable contributions if you take the standard deduction. ' Head Of See instructions ........... . . ........ . . ..... 10b household, $18,650 c Add lines 10a and 10b. These are your total adjustments to income ........... > 1m; - If you checked in I f l' h' d' ed _ any box under 11 Su tract ine 10c rom me 9. T Isis your a just gross Income .............. > 11 Standard 12 Standard deduction or itemized deductions (from Schedule A) ................ 11 Deduction, see instructions. 13 Qualied business income deduction. Attach Form 8995 or Form 89957;: ............ 13 14 Add lines 12 and 13 ................................................. 14 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter -0- . . ..... 15 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 113203 Form 1040 (2020) Form 1:340 [2020) George E. Beeper 77588-9531 Page 2 16 Tax {see instructions). Check if any from Form(s): 1 D 3814 2 D 4972 3 D 7 . . 16 17 Amount from Schedule 2, line 3 ........................................ 17 18 Add lines 15 and 17 ................................................ 13 19 Child tax credit or credit for other dependents .............................. 19 20 Amount from Schedule 3, line 7 ........................................ 20 21 Add lines 19 and 20 ................................................. 21 22 Subtract line 21 from line 18. If zero or less, enter -0- ......................... 22 23 Other taxs, including selfeemployment tax, from Schedule 2, line 10 .............. 23 24 Add lines 22 and 23. This is your total tax ............................... b 24 25 Federal income tax Withheld from: ...................................... Form(s) W72 .................................. IJ Form(s) 1099 ................................. c Other forms (see instructions) ...................... d Add lines 25a through 25c ......................... - If you have a qualifying child, 26 mm estimated tax payments and amount applied from 2[I19 Earned income credit (EIC) ........................ attach Sch. EIC. 17 - If you have 17 "ntaxab'e Additional child tax credit. Attach Schedule 9312 ......... combat pay, see 23 28 instructions. 29 American opportunity credit from Form 3863, line 8 ...... 29 30 Recovery rebate credit. See instrudions ............... 3|] 31 Amount from Schedule 3, line 13 .................... 31 32 Add lines 27 through 31. Thme are your total other payments and refundable credits ............................................................. D 32 33 Add lines 25d, 26, and 32. These are yourtotal payments . ............... b 33 34 If line 33 is more than line 24, subtract line 24 from line 33. This is the amount ou Refund _ V overpaid ........................................................ 34 Direct deposit? See instructions. 35a Amount of line 34 you want refunded to you. If Form 8888 is attached, check here > III 353 b b Routing number b i: Type: D Checking D Sayings b d Account number 36 Amount of line 34 you want applied to your 2021 estimated tax ....................................... P 36 Amount 37 Subtrad line 33 from line 24. This is die amount you owe nmiii' ............... b You Owe Note: Schedule H and Schedule 5E lers, line 37 may not represent all of the taxes you For details on how owe for 2020. See Schedule 3, line 12e, and its instructions for details. to pay, see instructions. 38 Estimated tax penalty (see instructions) .............. b ' 38 ' Third Party Do you want to allow another person to discuss this return with the IRS? See instructions. b D Yes. Complete below. D No Designee Dignee's Phone Personal idenbcation name i no. > number (PIN) > Sign Here Joint return? See instructions. ' Keep a copy for your records. Under penalties of perjury, I declare that I have examined this return and accompanying schedul and statements, and to the best of my knowledge and belief, they are tnie, corretx, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Your occupation If the IRS sent you an Identity Protection PIN, enter it here physician (see inst.) > m Spouse's signature. If a joint Date Spouse's occupation ' If the [R5 sent your spouse an relum. bath must sign. Identity Protection PIN, enter it here \f\f\fComprehensive Problem 4-2A Dr. George E. Beeper is a single taxpayer born on September 22, 1972. He lives at 45 Mountain View Dr., Apt. 321, Spokane, WA 99210. Dr. Beeper's Social Security number is 775-558-9531. Dr. Beeper works for the Pine Medical Group, and his earnings and income tax withholding for 2020 are reported on the W-2 form (see separate tab). 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 $6,000 Mortgage interest 14,500 Insurance 2,200 Depreciation (assume fully depreciated) 0 Repairs 600 Maintenance 2,000 The house was purchased on July 5, 1985. Dr. Beeper handles all rental activities (e.g., rent collection, nding tenants, etc.) himself. He spends about 10 hours per month on the rental. In 2020, 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, 2020 for $345,000 net after commissions. He acquired the home on June 3, 2002 for $260,000 and had made improvements of $10,000. Dr. Beeper was divorced on January 1, 2014. The divorce decree requires Dr. Beeper to pay his ex-wife, Meredith Gray (Social Security number 333- 451234), $800 per month. Dr. Beeper made all his monthly alimony payments in 2020. Dr. Beeper did not receive an EIP in 2020. 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 7a and on Schedule E, on lines 21, 25, and 26, use the minus sign to indicate a loss. - 0n Form 8582, if required, use the minus sign to enter a "loss" as a negative number on the lines 1d, 4, 16. However, per the instructions on the tax return, enter all numbers in Part II as positive amounts