Accountancy 503 Tax Return 3a

This document provides a solved homework assignment for Accountancy 503, specifically Tax Return 3a. It includes the necessary forms such as Form 1040, Schedule D, Schedule E, Form 4562, and Form 4797, all completed based on the provided financial information for Joon, a single taxpayer with a dependent child. The assignment covers various aspects of tax preparation, including income from salaries, interest, dividends, rental operations, and the sale of a rental residence and appliances. The solution demonstrates how to handle depreciation, capital gains, and other relevant tax calculations.

Accountancy 503—Fall 2016 Tax Return 3a—15 points; Due December 7
Joon, age 51, is an unmarried, cash basis, calendar year taxpayer. Joon has one 9-
year-old qualifying child who lives with him full-time and is claimed on Form 1040.
Joon has the following income and deductions for 2016:
RECEIPTS FOR YEAR/Deductions
Salaries and wages from local school district $78,000
Interest from Friendly Bank 1,235
Dividends from Tandem Diabetic Corporation (a publicly traded
U.S. corporation) 36
Allowable itemized deductions 6,970
RENTAL OPERATIONS
Rental income 14,400
Interest expense 7,800
Property taxes 1,450
Insurance 1,260
Depreciation--Building 2,895
Depreciation—Appliances 941
SALE OF RENTAL RESIDENCE
Sales price (October 26, 2016) 210,600
Cost (October 18, 2010)--$40,000 assigned to land 119,600
Depreciation allowed (Straight line MACRS) 17,367
Selling commission 7,440
Purchase costs (recording, other legal) 2,760
SALE OF APPLIANCES WITH RESIDENCE
Sales price (October 26, 2016) 6,600
Cost (September 25, 2014) 9,800
Depreciation allowed (Straight line MACRS) 6,037
Prepare the following forms for Joon for 2016:
Form 1040
Schedule D (Required)—Worksheet Not Required—You may calculate the
tax without completing the worksheet. See October 26 Solutions for an
example.
Schedule E
Form 4562
Form 4797
Provide any information that is not stated.