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Read the case on which your assignment is based. Determine allitems that will be deducted before the AGI calculation. In a MSExcel spreadsheet, list all deductible items in column A. In columnB, determine where that deduction should appear on Form 1040 (fortax year 2017).

Here is the tax info for this assignment

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Lelia Lubowitz
Lelia LubowitzLv2
28 Sep 2019

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Shivank and Claudia are MFL and had the following items for 2017:

Salary $183,000

Loss on sale §1244 small business stock acquired 3 years ago* (110,000)

Stock acquired 2 years ago became worthless during the year* (10,000)

Long-term capital gain: 25,000

Nonbusiness bad debt* (9,000)

Shivank had a car accident during the year in which his car was completely destroyed. At the time of the accident, the car had a fair market value of $30,000 and an adjusted basis of $40,000. He used the car 100% of the time for personal use. He received an insurance recovery of $21,000.

1. Provide a detailed calculation of the couple's AGI. Your answer should also include any applicable rules, exceptions to rules, limitations, tax treatment of all items that have an * next to them.

2. a. What is the rule for calculating the amount of the casualty loss?

b. Apply the rules to the facts and show a detailed calculation of the loss.

c. Which schedules/lines do the loss appear on?

Coastline CommunityCollege

Acct C103, IndividualTaxation

Summer 2018

Tax Year 2017 Form 1040Tax Return Project

Based upon Bill and Susan Minor’sinformation below, complete a Form 1040 for Tax Year 2017.

You will receive 10 points foreach correct figure you list on Lines 7, 8a, 12, 21, 37, 40, 42,43, 63, and 64.Email your completed Form 1040 to me by August 15,2018.

-In 2017, Bill and Susan Minor hadW-2 Wages totaling $99,000, Federal Tax Withheld of $9,000, andState Tax Withheld of $4,000.

-In 2017, Bill and Susan both hadhealth insurance for the entire year through their employers whichmet the Minimum Essential Coverage requirements under theAffordable Care Act.

-Bill is an auditor at a hotel andSusan is a high school business teacher.

-Bill and Susan will file MarriedFiling Joint in 2017.

-In 2017, Bill received interestincome of $250 from his 1st Bank of the Third BestAccount.He also cashed in a Certificate of Deposit early and thebank assessed a $25 penalty for early withdrawal of savings.

-In 2017, Bill and Susan spent $3,700making repairs on their home.The repairs included work on theirgarage door, replacement of the kitchen flooring, and refurbishingtheir electrical breaker box.

-The Minor’s took the StandardDeduction on their Form 1040 Tax Return in 2016.They don’t know ifthey can take the Standard Deduction or not in 2017.They want totake the largest deduction they can in 2017, whether that be theStandard Deduction OR the Itemized Deduction.

-In 2017, Susan received a $6,000inheritance from the estate of her great-great-grandmother.

-Susan and Bill are both 50 years oldand neither one is blind or disabled.

-Their grown children are Porsche andCarmen.The kids are out of the house and have their own jobs andapartments.Porsche, who made $96,000 in 2017, is a poor moneymanager and Bill gave her $3,800 in 2017.

-In 2017, Susan sent her Mom $1,500to help her Mom buy medication and medical devices.Susan does notand cannot claim her Mom as a Dependency Exemption.

-The Minor’s took fencing lessons in2017 that cost $2,400.They said these lessons help them “unwind”after a busy workday. Susan liked fencing so much she bought afoil, epee, and saber costing $2,200.A day after buying the fencingequipment, a thief broke into Susan’s fencing locker at the fencingcenter and stole the foil and saber worth $1,800.Susan filed apolice report, had no insurance on the foil and saber, and theproperty was not recovered.

-In 2017, Susan paid $850 in uniondues to the El Camino Real Teachers, Educators, and MentorsUnion.

-Bill owed the IRS $4,600 from his2015 Federal Income Tax Return.He is paying $212 amonth on this debt.In 2017, Bill calculated he paid $2,344 in taxand $200 in interest to the IRS.

-Susan helped her friend start abusiness.The friend plans on paying Susan $4,950 for all thework

she did.This payment will be made inDecember 2018.

-Susan decided in 2017 to become aself-employed tutor/teacher.She taught 2 kids business planningand

was paid $400.Her ONLY businessexpenses as a self-employed tutor/teacher were $50 for businesscards and $75 for paper, pencils, and supplies.Susan also tells youshe paid “Mystic Maria the World’s 7th Bestand Inexpensive Fortune Teller” $540 to predict Susan’ssuccess.Maria reported that Susan would be wildly successful in hertutoring/teaching business and would gross approximately $500 in2018.

-In 2017, Bill and Susan owned arental property and calculated Total Rental Real Estate Income onLine 26, Schedule E, of $6,820.

-In 2017, Bill won a $470 cash prizefor a contest he entered.Bill said he did NOT get a W-2 or a Form1099 for the $470 he won.

-The Minor’s received a State TaxRefund of $630 in April 2017 from the State of California.Thisrefund was for Tax Year 2016.

-Bill stated he contributed $2,000 tohis Roth IRA in 2017.

-Bill and Susan are members of theirlocal Elks Lodge, which is a non-profit organization, involved incharitable work, and a Qualifying Charitable Organization.TheMinor’s pay $140 a year for dues and their only activity with theElks is going to eat Sunday breakfast, attending dances, and buyingdrinks at the bar.

-The Minor’s paid $9,850 in HomeMortgage Interest in 2017.They paid a property tax bill of $3,700in 2017.

-In 2017, Bill drove his personal auto 3,900 miles as avolunteer meal deliverer for Let’s Feed All of the Hungry, aQualifying Charitable Organization.

-In 2017, Bill donated 150 hours of time to Goodwill, aQualifying Charitable Organization. He figures his time is worth$40 an hour.

-Susan has AB- blood type. When the Red Cross Bloodmobile stopsby her work, Susan donated blood. In 2017, she donated 6 pints ofblood. The local hospital charges $300 a pint for patients whoreceive AB- Blood.

-In 2017, Bill incurred $2,900 in gambling losses at Lost WagesCasino. In 2017, he won $4,100 in the California Super BigLotto.

-Bill and Susan calculated they had 6,000 commuting miles totheir W-2 jobs in 2017.

-The Minor’s donated $1,600 to Let’s Feed the Whales and Savethe Children Fund in 2017. Bill’s friend Dante said the fund was isa scam. Bill went on the IRS Website and found that the fund was aQualifying Charitable Organization.

- In 2017, Susan sold stock she had in The Coffee Grind Company.Susan’s friend, Alma Cabrera, an Enrolled Agent, and calculatedthat Susan had a Short-Term Capital Gain of $5,300 from the sale ofthe stock.

-In 2017, Susan decided to run for the city council. She paid a$255 filing fee and borrowed $15,000 from the local bank to financeher campaign. Susan lost the election.

-In 2017, Bill and Susan paid homeowner’s association dues of$1,400 on their personal residence.

-In 2017, Bill paid a dental bill of $7,500 for removal of 16 ofhis bad teeth and the filling of 16 of his other teeth.

In 2017, Bill paid $580 for DMV registration fees for his 2002Chevy S-10 Pickup Truck and Susan’s 2007 Yaris. Bill has determinedthese DMV fees are deductible on a Schedule A.

In 2017, Susan’s sister, who is a well-known, successful, andhighly paid entertainer, gave Susan a Tesla Model S Automobile witha Fair Market Value of $80,000. Susan uses the car to commute toher job and paid $900 in DMV registration fees that she hasdetermined are deductible on a Schedule A.

In 2017, Bill was ticketed for driving his car without a validregistration and no proof of insurance. He paid a fine of $350,which included court costs.

-In 2017, Susan found a gold and diamond ring near hear house.She turned it into the police department and after 30 days, thepolice gave the property back to Susan since no one claimed it. InNovember 2017, Susan had the ring appraised and found out the fairmarket value of this found property was $6,200.

-In 2017, Susan paid a researcher $300 to trace her familyhistory. The researcher reported to Susan she may be the rightfulowner of a small farm in Germany worth $1,000,000. Susan has madeplans to see if she owns the land, she has set aside $2,500 in asavings account for a title and legal search, and she will hire anattorney in December 2018 to determine her ownership rights.

years 2013 2014 2015 2016
spar 1,000000 2,000000 4,000000 8,000000
nisa 4,000000 (1,000000) 15,000000 (3,000000)


Based on the information above and the materials given about the topic, answer the following questions.
A. When you compare the profit of both companies, do you think there is earnings management? If so, in which company and which method of creative accounting that the company used to do earnings management.

B. Which firm do you think might be favoured by the stock market? Why.


In 2013 Spar company has only one asset, inventory, worth say £20,000000, then if the equity is £19,000000 and this year’s profit is £1,000000. If the company could first, adopt more generous inventories valuation policy to decrease provisions for obsolete inventoriesi by £200,000. Second revaluate the value of the inventories based on market value not on book value to increase the inventories by 1,000000.
A. How is the balance sheet of the company looks like before and after adopting these polices?. 1.5 marks
B. Do you think by adopting these polices to decrease provisions for obsolete inventories and increase inventories effect the company’s profit? Explain your answer using the calculation when it need it.


Nisa company in UK, where the tax system gives capital allowance (money deducted from the overall income tax). The tax year runs from 10th of April to 9th of April. The financial year of the company end was 30 of June. Tom is farmer and want to buy machine in March and wanted the machinery invoiced in in March, but would pay in August when the machine will be delivered.
A. Why do you think Tom wished to do this?
B. The manager of Nisa company accepted and decided to send the bill to the farmer Tom and record the transaction as revenue as soon as the bill has been sent. Why do you think the manager accept and decided to do revenue recognition in the way that he decided to do? Is there profit management here? explain your answer and show if there advantage and disadvantage of manager’s decision.


Assume that In 2014 Spar made profit of £2,000000 before deprecation. The company has £20,000000 worth of equipment. Currently it using the straight line method to depreciate its equipment over 10 years. However, the company is thinking to change its depreciation policy by to 20 years estimated useful life instead of 10 years.
A. Do you think this change will affect the company’s profit? Explain your answer using the calculation to show the profit before and after the change. If there was effect on company’s profit, what is the amount of the change.
B. After you finish analysing the case, now you need to conclude your assignment with the consequences of using creative accounting in managing the profits of companies.

Plus excel if possible

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