TAX FORM/RETURN PREPARATION PROBLEMS Thom Jones (SSN 000-00-1111) is an unincorporated manufacturer of widgets. He uses

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Tax Form Return Preparation Problems Thom Jones Ssn 000 00 1111 Is An Unincorporated Manufacturer Of Widgets He Uses 1 (86.51 KiB) Viewed 41 times

TAX FORM/RETURN PREPARATION PROBLEMS Thom Jones (SSN 000-00-1111) is an unincorporated manufacturer of widgets. He uses the LCM method to value his inventory and reports the following for 2020: Sales (less returns and allowances) $1,250,000 Cost of goods sold 500,000 Office expenses 10,000 Depreciation* ? Legal services 4,000 Salary expenses 36,000 Travel expenses 30,000 Repair expenses 20,000 * Information related to Mr. Jones's depreciation: Cost of office furniture acquired and placed in service on April 15, 2020 (7-year recovery). $480,000 Cost of warehouse acquired and placed in service on August 1, 2020 750,000 Depreciation on assets purchased and placed in service prior to 2020 28,000 The business operates under the name Jones Widget Company and is located at 400 W. Main Street in Springfield, Maryland 21368. Its employer identification number is 55-9876543. The business uses the cash method, Thom materially participates in it, and it did not make any payments that would require it to file Form 1099. Complete Thom's 2020 Form 4562 and Schedule C of Form 1040, assuming he elects to expense the maximum amount possible under Sec. 179 and uses bonus depreciation for any eligible amounts exceeding the Sec. 179 maximum.