mario 4: Kendall and Siena King ctions Using the tax software, complete the tax return, including Form 1040 and all appropriate forms, schedules, and worksheets. Answer the questions following the scenario. When entering Social Security numbers (SSNS) or Employer Identification Numbers (EINS), replace the Xs as directed, or with any four digits of your choice. view Notes . Kendall and Siena are married and file a joint return. • Siena is a full-time science teacher at a local public middle school. She spent $600 of her own money to purchase supplies for labs she conducted with her students. She did not receive any reimbursement for these expenses. • Kendall is a self-employed driver for Delicious Deliveries. Kendall provided a statement from the food delivery service that indicated the number of miles driven and fees paid for the year. These fees are considered ordinary and necessary for the food delivery business: . 4,786 miles driven while delivering food from 1/1/2022-6/30/2022 4,880 miles drived while delivering food from 7/1/2022-12/31/2022 o Insulated box rental: $300 • Vehicle safety inspection (required by Delicious Deliveries): $50 GPS device fee: $120 • Kendall's record keeping application shows he also drove 4,833 miles between deliveries (2,393 miles from 1/1/2022-6/30/2022 and 2,440 miles from 7/1/2022-12/31/2022) and 4,062 miles (2,051 miles from 1/1/2022-6/30/2022 and 2,011 miles from 7/1/2022-12/31/2022) driven between his home and his first and last delivery point of the day. Kendall has a separate car for personal use. He bought and started using his second car for business on September 1, 2020. • Kendall also kept receipts for the following out-of-pocket expenses: o $100 on tolls o $120 for car washes o $48 for parking tickets o $75 for Personal Protective Equipment (PPE) used during deliveries o $150 for snacks and lunches Kendall consumed while working • Kendall provided the Form 1099-NEC and Form 1099-K that he received from Delicious Deliveries. • Kendall also received $500 in cash tips that were not reported elsewhere. • Kendall was sick with Covid-19 and was unable to work for 14 days in May 2022. • Kendall purchased virtual currency through an electronic transfer of cash from his checking account. He had no other virtual currency transactions. The U. S. federal student loan that Siena owed for postsecondary educational expenses was forgiven in 2022. The amount of student loan canceled was $15,000. Siena did not receive any tax form reporting this amount. • Kendall and Siena are U.S. citizens, have valid Social Security numbers, and livad ne Linited States all year. They have not taken distributions from any retirement plans,

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

15. For 2022, how much can Siena take as an educator expense deduction for the lab supplies she purchased for her students?

a. $0 

b. $250

c. $300

d. $600

cenario 4: Kendall and Siena King
actions
Using the tax software, complete the tax return, including Form 1040 and all appropriate forms,
schedules, and worksheets. Answer the questions following the scenario.
When entering Social Security numbers (SSNS) or Employer Identification Numbers
(EINS), replace the Xs as directed, or with any four digits of your choice.
verview Notes
. Kendall and Siena are married and file a joint return.
• Siena is a full-time science teacher at a local public middle school. She spent $600 of her own
money to purchase supplies for labs she conducted with her students. She did not receive any
reimbursement for these expenses.
• Kendall is a self-employed driver for Delicious Deliveries. Kendall provided a statement from the
food delivery service that indicated the number of miles driven and fees paid for the year. These
fees are considered ordinary and necessary for the food delivery business:
o 4,786 miles driven while delivering food from 1/1/2022-6/30/2022
4,880 miles drived while delivering food from 7/1/2022-12/31/2022
o Insulated box rental: $300
• Vehicle safety inspection (required by Delicious Deliveries): $50
o GPS device fee: $120
• Kendall's record keeping application shows he also drove 4,833 miles between deliveries (2,393
miles from 1/1/2022-6/30/2022 and 2,440 miles from 7/1/2022-12/31/2022) and 4,062 miles (2,051
miles from 1/1/2022-6/30/2022 and 2,011 miles from 7/1/2022-12/31/2022) driven between his
home and his first and last delivery point of the day. Kendall has a separate car for personal use.
He bought and started using his second car for business on September 1, 2020.
• Kendall also kept receipts for the following out-of-pocket expenses:
o $100 on tolls
o $120 for car washes.
o $48 for parking tickets
o $75 for Personal Protective Equipment (PPE) used during deliveries
o $150 for snacks and lunches Kendall consumed while working
. Kendall provided the Form 1099-NEC and Form 1099-K that he received from Delicious Deliveries.
• Kendall also received $500 in cash tips that were not reported elsewhere.
• Kendall was sick with Covid-19 and was unable to work for 14 days in May 2022.
• Kendall purchased virtual currency through an electronic transfer of cash from his checking
account. He had no other virtual currency transactions.
• The U. S. federal student loan that Siena owed for postsecondary educational expenses was
forgiven in 2022. The amount of student loan canceled was $15,000. Siena did not receive any tax
form reporting this amount.
• Kendall and Siena are U.S. citizens, have valid Social Security numbers, and livadine United
States all year. They have not taken distributions from any retirement plans.
Transcribed Image Text:cenario 4: Kendall and Siena King actions Using the tax software, complete the tax return, including Form 1040 and all appropriate forms, schedules, and worksheets. Answer the questions following the scenario. When entering Social Security numbers (SSNS) or Employer Identification Numbers (EINS), replace the Xs as directed, or with any four digits of your choice. verview Notes . Kendall and Siena are married and file a joint return. • Siena is a full-time science teacher at a local public middle school. She spent $600 of her own money to purchase supplies for labs she conducted with her students. She did not receive any reimbursement for these expenses. • Kendall is a self-employed driver for Delicious Deliveries. Kendall provided a statement from the food delivery service that indicated the number of miles driven and fees paid for the year. These fees are considered ordinary and necessary for the food delivery business: o 4,786 miles driven while delivering food from 1/1/2022-6/30/2022 4,880 miles drived while delivering food from 7/1/2022-12/31/2022 o Insulated box rental: $300 • Vehicle safety inspection (required by Delicious Deliveries): $50 o GPS device fee: $120 • Kendall's record keeping application shows he also drove 4,833 miles between deliveries (2,393 miles from 1/1/2022-6/30/2022 and 2,440 miles from 7/1/2022-12/31/2022) and 4,062 miles (2,051 miles from 1/1/2022-6/30/2022 and 2,011 miles from 7/1/2022-12/31/2022) driven between his home and his first and last delivery point of the day. Kendall has a separate car for personal use. He bought and started using his second car for business on September 1, 2020. • Kendall also kept receipts for the following out-of-pocket expenses: o $100 on tolls o $120 for car washes. o $48 for parking tickets o $75 for Personal Protective Equipment (PPE) used during deliveries o $150 for snacks and lunches Kendall consumed while working . Kendall provided the Form 1099-NEC and Form 1099-K that he received from Delicious Deliveries. • Kendall also received $500 in cash tips that were not reported elsewhere. • Kendall was sick with Covid-19 and was unable to work for 14 days in May 2022. • Kendall purchased virtual currency through an electronic transfer of cash from his checking account. He had no other virtual currency transactions. • The U. S. federal student loan that Siena owed for postsecondary educational expenses was forgiven in 2022. The amount of student loan canceled was $15,000. Siena did not receive any tax form reporting this amount. • Kendall and Siena are U.S. citizens, have valid Social Security numbers, and livadine United States all year. They have not taken distributions from any retirement plans.
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