Pat and Jordan Beber are married and file a joint return in 2021. They live at 12345 Hemenway Avenue, Marlborough, MA 01752. Pat isa self-employed tax preparer whose SSN is 412-34-5670. Jordan is a software programmer whose SSN is 412-34-5671. Jordan had thefollowing income and expenses for the year:Jordan's W-2:Gross wagesSocial security taxMedicare taxFederal withholding taxState withholding tax$ 100,7766,2481,46118,7354,800Pat was the sole proprietor of NAMA Tax Service. The business is located at 123 Main Street, Marlborough, MA 01752, and thebusiness code is 541213. Pat had the following revenue and expenses (Cash basis):RevenueExpenses:AdvertisingInsurance$ 80,0001,2003,2002,40018,000TelephoneOffice rentUtilitiesOffice suppliesDepreciation4,8005,0006,041 (must be allocated to She S 1231 assets listed next)Pat had the following business assets:Office furniture: Purchased for $4,950 on May 20, 2019. The equipment is being depreciated over seven-year MACRS 200%declining balance. Pat sold it on May 15, 2021, for $4,000.⚫ Office equipment: Purchased a copier for $13,800 on January 10, 2021. The copier is being depreciated over five-year MACRS200% declining balance. Pat makes no elections for § 179 or bonus depreciation.. Computer and equipment: Purchased a computer system for $8,900 on January 2, 2020. The computer is being depreciated overfive-year MACRS 200% declining balance. Pat makes no elections for § 179 or bonus depreciation.Pat and Jordan had the following other sources of income and deductions:Interest from a CD in the amount of $1,410,Long-term loss carryover from 2019 of $5,000.Real estate taxes of $8,459. Pat and Jordan Beber are married and file a joint return in 2021. They live at 12345 Hemenway Avenue, Marlborough, MA 01752. Pat isa self-employed tax preparer whose SSN is 412-34-5670. Jordan is a software programmer whose SSN is 412-34-5671. Jordan had thefollowing income and expenses for the year:Jordan's W-2:Gross wagesSocial security taxMedicare taxFederal withholding taxState withholding tax$ 100,7766,2481,46118,7354,800Pat was the sole proprietor of NAMA Tax Service. The business is located at 123 Main Street, Marlborough, MA 01752, and thebusiness code is 541213. Pat had the following revenue and expenses (Cash basis):RevenueExpenses:AdvertisingInsurance$ 80,0001,2003,2002,40018,000TelephoneOffice rentUtilitiesOffice suppliesDepreciation4,8005,0006,041 (must be allocated to She S 1231 assets listed next)Pat had the following business assets:Office furniture: Purchased for $4,950 on May 20, 2019. The equipment is being depreciated over seven-year MACRS 200%declining balance. Pat sold it on May 15, 2021, for $4,000.⚫ Office equipment: Purchased a copier for $13,800 on January 10, 2021. The copier is being depreciated over five-year MACRS200% declining balance. Pat makes no elections for § 179 or bonus depreciation.. Computer and equipment: Purchased a computer system for $8,900 on January 2, 2020. The computer is being depreciated overfive-year MACRS 200% declining balance. Pat makes no elections for § 179 or bonus depreciation.Pat and Jordan had the following other sources of income and deductions:Interest from a CD in the amount of $1,410,Long-term loss carryover from 2019 of $5,000.Real estate taxes of $8,459.

Let's start by calculating the depreciation for each of Pat's business assets:1. Office furniture:…

Pat and Jordan Beber are married and file a joint return in 2021. They live at 12345 Hemenway Avenue, Marlborough, MA 01752. Pat is a self-employed tax preparer whose SSN is 412-34-5670. Jordan is a software programmer whose SSN is 412-34-5671. Jordan had the following income and expenses for the year: Jordan's W-2: Gross wages Social security tax Medicare tax Federal withholding tax State withholding tax $ 100,776 6,248 1,461 18,735 4,800 Pat was the sole proprietor of NAMA Tax Service. The business is located at 123 Main Street, Marlborough, MA 01752, and the business code is 541213. Pat had the following revenue and expenses (Cash basis): Revenue Expenses: Advertising Insurance $ 80,000 1,200 3,200 2,400 18,000 Telephone Office rent Utilities Office supplies Depreciation 4,800 5,000 6,041 (must be allocated to She S 1231 assets listed next) Pat had the following business assets: Office furniture: Purchased for $4,950 on May 20, 2019. The equipment is being depreciated over seven-year MACRS 200% declining balance. Pat sold it on May 15, 2021, for $4,000. ⚫ Office equipment: Purchased a copier for $13,800 on January 10, 2021. The copier is being depreciated over five-year MACRS 200% declining balance. Pat makes no elections for § 179 or bonus depreciation. . Computer and equipment: Purchased a computer system for $8,900 on January 2, 2020. The computer is being depreciated over five-year MACRS 200% declining balance. Pat makes no elections for § 179 or bonus depreciation. Pat and Jordan had the following other sources of income and deductions: Interest from a CD in the amount of $1,410, Long-term loss carryover from 2019 of $5,000. Real estate taxes of $8,459.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q