2B. Christopher Crosphit (birthdate April 28, 1979) owns and operates a health club called "Catawba Fitness." The business is located at 4321 New Cut Road, Spartanburg, SC 29303. The principal business code is 812190 and the EIN is 12-3456789. Chris had the following income and expenses from the health club: CON OTS OSE 003 neer Income Expenses: Business insurance Office supplies Payroll Payroll taxes Travel Equipment & club maintenance Cleaning service Equipment rent Utilities (electric, water, gas) Telephone Rent Advertising Special workout clothing and boxing gloves Subscription to Biceps Monthly magazine Educational seminar on weight training Other expenses $216,000 3,500 3,330 98,900 9,112 2,450 10,750 8,775 22,800 13,975 2,780 32,800 5,150 780 120 770 1,830 The business uses the cash method of accounting and has no accounts receivable COor inventory held for resale. Chris has the following interest income for the year: Upper Piedmont Savings Bank money market account Morgan Bank bond portfolio interest ISHT $13,000 12,500 final Chris also dabbles as a broker of antique and rare books. He acquires and scav- chenges for books and then sells them on the Internet. He generated $4,000 of sales in 2021 and the books he sold cost $3,500. He also incurred $7,600 in travel and other 108 expenses related to this activity. Chris has never turned a profit in the book business, but he loves books and book selling and does not mind losing money doing it. Chris has been a widower for 10 years with a dependent son, Arnold (Social Security number 276-23-3954), and Chris files his tax return as head of household. Arnold (birth- date July 1, 2003) is a high school student; he does not qualify for the child tax credit but does qualify for the $500 other dependent credit. They live next door to the health club at 4323 New Cut Road. Chris does all the administrative work for the health club out of an office in his home. The room is 171 square feet and the house has a total of 1,800 square feet. Chris pays $20,000 per year in rent and $4,000 in utilities. Chris' Social Security number is 565-12-6789. He made an estimated tax payment to the IRS of $500 on April 15, 2021. Chris received a $2,800 EIP in 2021. Required: Complete Chris'federal tax return for 2021 on Form 1040, Schedule 1, Schedule B, Schedule C, and Form 8829. Do not complete Form 4562 (depreciation).

2B. Christopher Crosphit (birthdate April 28, 1979) owns and operates a health club called "Catawba Fitness." The business is located at 4321 New Cut Road, Spartanburg, SC 29303. The principal business code is 812190 and the EIN is 12-3456789. Chris had the following income and expenses from the health club: CON OTS OSE 003 neer Income Expenses: Business insurance Office supplies Payroll Payroll taxes Travel Equipment & club maintenance Cleaning service Equipment rent Utilities (electric, water, gas) Telephone Rent Advertising Special workout clothing and boxing gloves Subscription to Biceps Monthly magazine Educational seminar on weight training Other expenses $216,000 3,500 3,330 98,900 9,112 2,450 10,750 8,775 22,800 13,975 2,780 32,800 5,150 780 120 770 1,830 The business uses the cash method of accounting and has no accounts receivable COor inventory held for resale. Chris has the following interest income for the year: Upper Piedmont Savings Bank money market account Morgan Bank bond portfolio interest ISHT $13,000 12,500 final Chris also dabbles as a broker of antique and rare books. He acquires and scav- chenges for books and then sells them on the Internet. He generated $4,000 of sales in 2021 and the books he sold cost $3,500. He also incurred $7,600 in travel and other 108 expenses related to this activity. Chris has never turned a profit in the book business, but he loves books and book selling and does not mind losing money doing it. Chris has been a widower for 10 years with a dependent son, Arnold (Social Security number 276-23-3954), and Chris files his tax return as head of household. Arnold (birth- date July 1, 2003) is a high school student; he does not qualify for the child tax credit but does qualify for the $500 other dependent credit. They live next door to the health club at 4323 New Cut Road. Chris does all the administrative work for the health club out of an office in his home. The room is 171 square feet and the house has a total of 1,800 square feet. Chris pays $20,000 per year in rent and $4,000 in utilities. Chris' Social Security number is 565-12-6789. He made an estimated tax payment to the IRS of $500 on April 15, 2021. Chris received a $2,800 EIP in 2021. Required: Complete Chris'federal tax return for 2021 on Form 1040, Schedule 1, Schedule B, Schedule C, and Form 8829. Do not complete Form 4562 (depreciation).

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter1: Asset, Liability, Owner’s Equity, Revenue, And Expense Accounts

Section: Chapter Questions

Problem 3E: Dr. L. M. Patton is an ophthalmologist. As of December 31, Dr. Patton owned the following property...

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