Facts William Spicer (123-45-5789) and June Spicer (937-65-4321) have.docx - Facts William Spicer and June Spicer(93765-4321 have two dependent

Facts William Spicer (123-45-5789) and June Spicer (937-65-4321) have.docx

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Facts William Spicer (123-45-5789) and June Spicer (937- 65-4321) have two dependent children, Sophie (236-52-6587) age 9 and Carl (236-52-6588) age 7, both of whom live at home. William operates a gourmet market in Raleigh, NC Bill's Market, as an accrual-basis sole proprietorship. The information on gross sales, expenses, and property transactions is shown below. William receives no salary and therefore, there is no related FICA tax for him. The Market sold a unique piece of equipment for $13,000. It had originally cost $5,000 when purchased on March 5, 2014; it had an adjusted basis of $3,000 when sold on August 15, 2018. The Market also sold a display case for $1,000 on December 12, 2018, that had cost $12,000 when purchased on June 6, 2012; it had an adjusted basis of $4,000 when sold. The gains or losses on these asset sales are the same for tax and financial accounting. The business complies with all Form 1099 requirements. William is also a 10 percent shareholder in Imagineers Corporation, an S corporation, but takes no active role in the business. He received a Schedule K-1 from this S corporation reporting $18,000 in ordinary business income. June is a general partner in The Bridal Shop Partnership. She worked 3 days a week at the shop and
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  • Winter '19
  • Richard Levi

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