Intermediate Accounting, 10 Ed
10th Edition
ISBN: 9781260310177
Author: Mark W. Nelson, Wayne B. Thomas J. David Spiceland
Publisher: McGraw-Hill Education
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Complete the 2024 federal income tax return for Caleb and Anne Stone. You may assume the Stones have substantiated all expenses that qualify for tax deductions and tax credits In preparing their tax return, you may use Form 1040, Schedule 1, 2, 3, A, B, C, D, E, and SE, Form 2441, 4562, 8582, 8863, 8949, 8995 and other forms if necessary.
Please read the following assumptions and instructions:
1. Meal expenses associated with their business are 50% deductible.
Family Information:
Husband
Caleb Stone
SSN 598-94-2583
Birthday: 8/21/1970
Wife
Anne Stone
SSN 301-52-2942
Birthday: 4/15/1974
Home address
461 Golden Ave, Long Beach, CA 90802
Son
Henry Stone
SSN 614-42-5871
Birthday: 2/08/2005
Daughter
Izzy Stone
SSN 658-98-7480
Birthday: 6/13/2013
Facts:
In 2019, Caleb Stone purchased an annuity from MyLife for $120,000. Monthly payments of $2,000 on the annuity started on January 15, 2024 and will continue for a total of 15 years.
2. On…
The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023:
Land
Land improvements
Building
Plant Asset
$ 460,000
235,000
2,050,000
1,180,000
Accumulated Depreciation
$ -
56,000
361,000
Equipment
Automobiles
205,000
416,000
123,000
Transactions during 2024 were as follows:
a. On January 2, 2024, equipment was purchased at a total invoice cost of $315,000, which included a $6,600 charge for freight.
Installation costs of $38,000 were incurred in addition to the invoice cost.
b. On March 31, 2024, a small storage building was donated to the company. The person donating the building originally purchased
it three years ago for $30,000. The fair value of the building on the day of the donation was $20,000.
c. On May 1, 2024, expenditures of $61,000 were made to repave parking lots at Pell's plant location. The work was necessitated
by damage caused by severe winter weather. The repair doesn't provide future benefits beyond those…
None
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