Maurice Tutor
$15/per page/Negotiable
Julie Hernandez is single and has no dependents. She operates a dairy farm and her Social
Security number is 000-00-1111. She lives at 1325 Vermont Street in Costa, Florida.
Consider the following information for the current year:
Ac€?c Schedule C was prepared by her accountant and the net profit from the dairy operations is $48,000.
Ac€?c Itemized deductions amount to $4,185.
Ac€?c Dividend income (qualified dividend) amounts to $280.
Ac€?c State income tax refund received during the year is $125. She did not itemize last year.
Ac€?c In June, a burglar broke into her house and stole the following two assets, which were
acquired in 1988:
Painting:Â Basis-$2,000
FMV-$10,000
Insurance Proceeds Received-$9,000
Sculpture:Â Basis-1,700
FMV-1,500
Insurance Proceeds Received-0
The following assets used in her business were sold during the year:
Tractor:Â Acquisition Date-June 10, 2002
Original Cost-$25,000
Depreciation to Date of Sale-$25,000
Date of Sale-Oct. 20
Selling Price-$8,300
Barn:Â Acquisition Date-May 23, 1992
Original Cost-90,000
Depreciation to Date of Sale-61,000Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
Date of Sale-May 13
Selling Price-87,000
Land:Â Acquisition Date-May 23, 1992
Original Cost-15,000Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
Depreciation to Date of Sale:Ac€?o0Ac€?o                            Â
Date of Sale-May 13
Selling Price-27,000
Cows:Â Acquisition Date-Sept. 7, 2010
Original Cost-20,000
Depreciation to Date of Sale-13,000
Date of Sale-Nov. 8
Selling Price-21,000
In August, three acres of the farm were taken by the state under the right of eminent domain
for the purpose of building a highway. The basis of the three acres is $1,500, and the state
paid the FMV, $22,000, on February 10. The farm was purchased on August 12, 1973.
Nonrecaptured net Section 1231 losses from the five most recent tax years preceding
the current year amount to $7,000. Estimated taxes paid during the year amount to
$32,000.
Prepare Forms 1040, 4684 Section A, 4797, and Schedule D for the current year. (Do
not consider self-employment taxes)