ACCOUNTING 308 TAX RETURN PROJECT #1 Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, and Wanda owns her own business. They file a joint return. Personal items: Wages / Salaries $75,000 (Includes both Lance and Wanda) Interest Income 1,100 Child support payments to John Allen 7,200 Lottery winnings 630 Federal income tax withholding 5,800 State income tax withheld 2,500 Wanda was previously married to John Allen, they divorced several years ago (prior to 2018). Under the divorce decree, Wanda was obligated to pay alimony to John. She paid him $7,200 throughout the year. Wanda is the owner of her own business. Throughout the year she earned $20,000 of taxable income from this business (taxed as an S-Corp). Additionally, Lance and Wanda had: (1)Sale of LMN publically traded stock on 8/15/2020 for $8,000 (originally purchased for $7,000 on 1/15/2016) (2)Sale of QRS publically traded stock on 10/15/2020 for $3,000 (originally purchased for $10,000 on 12/15/2019) (3)Sale of a boat on 5/15/2020 for $10,000 used for personal recreation (originally purchased for $20,000 on 6/15/2015) (4) Wanda inherited publically traded stock worth $30,000 from a deceased uncle on September 30, 2020 (5) Immediately after receiving this stock, Wanda sold it for $30,000. This stock was originally purchased by his uncle on January 15th, 2017 for $23,000
ACCOUNTING 308 TAX RETURN PROJECT #1 Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, and Wanda owns her own business. They file a joint return. Personal items: Wages / Salaries $75,000 (Includes both Lance and Wanda) Interest Income 1,100 Child support payments to John Allen 7,200 Lottery winnings 630 Federal income tax withholding 5,800 State income tax withheld 2,500 Wanda was previously married to John Allen, they divorced several years ago (prior to 2018). Under the divorce decree, Wanda was obligated to pay alimony to John. She paid him $7,200 throughout the year. Wanda is the owner of her own business. Throughout the year she earned $20,000 of taxable income from this business (taxed as an S-Corp). Additionally, Lance and Wanda had: (1)Sale of LMN publically traded stock on 8/15/2020 for $8,000 (originally purchased for $7,000 on 1/15/2016) (2)Sale of QRS publically traded stock on 10/15/2020 for $3,000 (originally purchased for $10,000 on 12/15/2019) (3)Sale of a boat on 5/15/2020 for $10,000 used for personal recreation (originally purchased for $20,000 on 6/15/2015) (4) Wanda inherited publically traded stock worth $30,000 from a deceased uncle on September 30, 2020 (5) Immediately after receiving this stock, Wanda sold it for $30,000. This stock was originally purchased by his uncle on January 15th, 2017 for $23,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ACCOUNTING 308 TAX RETURN PROJECT #1 Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501.
Lance works for the convention bureau of the local Chamber of Commerce, and Wanda owns her own business. They file a joint return.
Personal items: Wages / Salaries $75,000 (Includes both Lance and Wanda) Interest Income 1,100 Child support payments to John Allen
7,200 Lottery winnings 630 Federal income tax withholding 5,800 State income tax withheld 2,500 Wanda was previously married to John
Allen, they divorced several years ago (prior to 2018). Under the divorce decree, Wanda was obligated to pay alimony to John. She paid
him $7,200 throughout the year. Wanda is the owner of her own business. Throughout the year she earned $20,000 of taxable income from
this business (taxed as an S-Corp). Additionally, Lance and Wanda had: (1)Sale of LMN publically traded stock on 8/15/2020 for $8,000
(originally purchased for $7,000 on 1/15/2016) (2)Sale of QRS publically traded stock on 10/15/2020 for $3,000 (originally purchased for
$10,000 on 12/15/2019) (3)Sale of a boat on 5/15/2020 for $10,000 used for personal recreation (originally purchased for $20,000 on
6/15/2015) (4)Wanda inherited publically traded stock worth $30,000 from a deceased uncle on September 30, 2020 (5) Immediately after
receiving this stock, Wanda sold it for $30,000. This stock was originally purchased by his uncle on January 15th, 2017 for $23,000
Prepare a tax form 1040 and 1040s1 only.
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