please dont copy and paste the previous answer. thank you Schedules A, B, and C.

Question

please dont copy and paste the previous answer.
thank you

Schedules A, B, and C. Suggested software: H&R; BLOCK Tax Software. 58. John Smith, age 31, is single and has no dependents. At the beginning of 2017, John started his own excavation business and named it Earth Movers. John lives at 1045 Center Street, Lindon, UT, and his business is located at 381 State Street, Lindon, UT. The ZIP Code for both addresses is 84042. John's Social Security number is 111-11-1111, and the business identification number is 11-1111111. John is a cash basis taxpayer. During 2017, John reports the following items in connection with his business. $912,000 36,000 9,000 2,500 4,000 34,000 42,000 7,000 21,000 560,000 80,000 Fee income for services rendered Building rental expense Office furniture and equipment rental expense Office supplies Utilities Salary for secretary Salary for equipment operators Payroll taxes Fuel and oil for the equipment Purchase of three new front-end loaders on January 15, 2017, for $560,000 Purchase of a new dump truck on January 18, 2017

Explanation / Answer

Fees 912000 Less : Building rental expense 36000 Office furniture and equipment rental expense 9000 Office Supplies 2500 Utilities 4000 Salaries (34000+42000) 76000 Payroll taxes 7000 Fuel and oil for the equipment 21000 Recovery of cost for loaders (560000-500000*0.50) = 30000 (560000-500000-30000)*0.20 = 6000 (30000+6000) 36000 Recovery of cost for truckers 48000 239500 (80000*0.50 = 40000 (560000-40000)*0.20 = 8000 (40000+8000) Less : Section 179 deduction 500000 Business Income 172500 Interest 10000 Dividend 9500 Adjusted Gross Income 192000 Fees 912000 Less : Building rental expense 36000 Office furniture and equipment rental expense 9000 Office Supplies 2500 Utilities 4000 Salaries (34000+42000) 76000 Payroll taxes 7000 Fuel and oil for the equipment 21000 Cost Recovery : Car(75000*0.20) = 15000, maximum available for car is $11160 11160 Recovery of cost for loaders 36000 Recovery of cost for truckers 48000 250660 Less : Section 179 deduction 500000 Business Income 161340 Interest 10000 Dividend 9500 Adjusted Gross Income 180840 The AGI is lower if car is purchase and shares are sold

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