calculate tac return of the year
John and Ellen Brite are married and file a joint return. They have no dependents. John owns an unincorporated specialty electrical lighting retail store, Brite-On. Brite-On had the following assets on January 2, 2013:
Assets Cost Old store building purchased April 1, 2002 200,000 Land $40,000 Equipment (7-year recovery) purchased January 10, 2008 55,000 Inventory valued using FIFO method: Old inventory: 40,000 light bulbs $4/bulb Newest 50000 5
Brite-On purchased a competitors store on March 1, 2013 for $225,000. The purchase price included the following: New store building $161000(FMV) Land 50000 (FMV) Equipment (5-year recovery) 30,000 (FMV) Inventory: 5,000 light bulbs $7/bulb (cost)
On June 30, 2013, Brite-On sold the 7-year recovery period equipment for $20,000. Brite-On sold 60,000 light bulbs at a price of $12/bulb during the year. Brite-On had the following revenues Service revenues $45,000 Interest expense on business loans 7950 Operating expense 18795 Taxes and licenses 15575 Utilities 29600
John and Ellen also had some personal expenses: Medical bills $ 6600 Real property taxes 9300 Home mortgage interest 123,00 Charitable contributions (cash) 5300
Please calculate the 2014 tax return for them, and show how do you calculate much amount. (just show me the formate, or the calculation will be fine thanks)
