COMPREHENSIVE PROBLEM 3 With Emphasis on Schedule C Christian Everland (SS# 412-34-5670) is single and resides at 3554 Arrival Road, Apt. 6E, Buckhead, GA 30625. Page B-4 Last year Christian started his own landscaping business. He now has two employees and had the following business results in 2016: Revenue $63,500 Expenses Wages $12,500 Payroll taxes 956 Fuel Repairs Assets Truck, used 100% for business. Original cost of $22,000. Purchased on 03/01/16. Mower #1. Original cost of $4,500. Purchased new on 01/05/16. Mower #2. Leased for $200 per month for all of 2016. 3,500 2,345 Other business equipment. Original cost of $4,000. Purchased new on 01/05/16. Christian has no other income, does not itemize, and has no dependents. He paid four quarterly federal tax estimates of $1,000 each. Required Prepare Christian's 2016 Form 1040 and supplemental schedules. Schedule C, Form 4562, and Schedule SE are required. He wants to contribute to the presidential election campaign and does not want anyone to be a third-party designee. Christian had qualifying health care coverage at all times during the tax year. For any missing information, make reasonable assumptions.
COMPREHENSIVE PROBLEM 3 With Emphasis on Schedule C Christian Everland (SS# 412-34-5670) is single and resides at 3554 Arrival Road, Apt. 6E, Buckhead, GA 30625. Page B-4 Last year Christian started his own landscaping business. He now has two employees and had the following business results in 2016: Revenue $63,500 Expenses Wages $12,500 Payroll taxes 956 Fuel Repairs Assets Truck, used 100% for business. Original cost of $22,000. Purchased on 03/01/16. Mower #1. Original cost of $4,500. Purchased new on 01/05/16. Mower #2. Leased for $200 per month for all of 2016. 3,500 2,345 Other business equipment. Original cost of $4,000. Purchased new on 01/05/16. Christian has no other income, does not itemize, and has no dependents. He paid four quarterly federal tax estimates of $1,000 each. Required Prepare Christian's 2016 Form 1040 and supplemental schedules. Schedule C, Form 4562, and Schedule SE are required. He wants to contribute to the presidential election campaign and does not want anyone to be a third-party designee. Christian had qualifying health care coverage at all times during the tax year. For any missing information, make reasonable assumptions.
Chapter26: Tax Practice And Ethics
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Transcribed Image Text:COMPREHENSIVE PROBLEM 3
With Emphasis on Schedule C
Christian Everland (SS# 412-34-5670) is single and
resides at 3554 Arrival Road, Apt. 6E, Buckhead, GA
30625.
Page B-4
Last year Christian started his own landscaping business.
He now has two employees and had the following
business results in 2016:
Revenue
$63,500
Expenses
Wages
$12,500
Payroll taxes
956
Fuel
Repairs
Assets
Truck, used 100% for business. Original cost
of $22,000. Purchased on 03/01/16.
Mower #1. Original cost of $4,500. Purchased
new on 01/05/16.
Mower #2. Leased for $200 per month for all
of 2016.
3,500
2,345
Other business equipment. Original cost of
$4,000. Purchased new on 01/05/16.
Christian has no other income, does not itemize, and has
no dependents. He paid four quarterly federal tax
estimates of $1,000 each.
Required
Prepare Christian's 2016 Form 1040 and supplemental
schedules. Schedule C, Form 4562, and Schedule SE are
required. He wants to contribute to the presidential
election campaign and does not want anyone to be a
third-party designee. Christian had qualifying health care
coverage at all times during the tax year. For any missing
information, make reasonable assumptions.
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