(A) Prepare an individual income tax return. George Large (SSN 000-11-1111) and his wife Marge Large (SSN 000-22-2222) live at 2000 Lakeview Drive, Cleveland, OH 49001 and want you to prepare their 2017 income tax return based on the information below: George Large worked as a salesman for Toyboat, Inc. He received a salary of $80,000 ($8,500 of federal income taxes withheld and $1,800 of state income taxes withheld) plus an expense reimbursement from Toyboat of $5,000 to cover his employee business expenses. George must make an adequate accounting to his employer and return any excess reimbursement, none of the reimbursement was related to the meals and entertainment. Additionally, Toyboat provides George with medical insurance worth $7,200 per year. George drove his car a total of 24,000 miles during the year, and he placed the car in service on June 1, 2015. His log indicates that 18,000 miles were for sales calls to customers at the customers' offices and the remainder was personal mileage. George uses the standard mileage rate method. George is a college basketball fan. He purchased two season tickets for a total of $4,000. He takes a customer to every game, and they discuss some business before, during, and after the games. George also takes clients to business lunches. His log indicates that he spent $1,500 on these business meals. George also took a five-day trip to the Toyboat headquarters in Musty, Ohio. He was so well-prepared that he finished his business in three days, so he spent the other two days sightseeing. He had the following expenses during each of the five days of his trip: Airfare $200 Lodging $85/day Meals $50/day Taxicabs $20/day Marge Large is self-employed. She repairs rubber toy boats in the basement of their home. The total square footage of the Larges' home, including the basement, is 3,000 square feet. The portion of the basement used in Marge's business is 750 square feet. The business code is 811490. She had the following income and expenses: Income from rubber toy boat repairs $15,000 Cost of supplies 5,000 Contract labor 3,500 Telephone (business) 500 The Larges use the simplified method to figure their deduction for Marge's business use of their home. The Larges incurred the following total other expenses: Real estate taxes 2,500 Mortgage interest 4,500 Cash charitable contributions 3,500 Prepare Form 1040, Schedules A, C, and SE for Form 1040, and Form 2106 for the 2017 year. (Assume no depreciation for this problem and that no estimated taxes were paid by the Larges.)(B) In addition to the preparation of the individual income tax return for this topic, write a 300-500-word paper in which you address the following ethical issues associated with tax preparation:1. Discuss the legal and ethical aspects of accurately reporting income on tax returns using Circular 230 as published by the Department of Treasury (located in Topic Materials). Discuss one item in Section B on Duties and Restrictions and the consequences to tax preparers if they fail to adhere to the guidelines as provided by the Department of Treasury.2. Compare and contrast the concepts of "tax avoidance" and "tax evasion".3. (Optional) You are welcome to add a discussion about how ethics in taxation can correlate to the Christian worldview. In other words, what guidance from a Biblical perspective could be applied to the preparation of tax returns for clients?Prepare this assignment according to the APA guidelinesApply basic legal, tax, and ethical concepts to issues in financial reporting.

Explanation:

prepare from 1040 to disclose Income and respective Tax  

                                                                                                  FORM 1040

                                                                                                   Amount ($)

Salary Received                                                                  80,000

Business Income- Wn1)                                                           2,789

Total Income                                                                           82,789

Less - Itemized wise Deduction-Wn2                                    21,405

Total Income                                                                            61,384

Standard deduction                                                            11,900

Total Taxable Income                                                             49,484

tax  

From 0-$17400                                               10%                       1,740

From $17400-$70700                                       15%                       4,813

Total Tax Liability                                                                      6,553

                                                          Schedule A

                                                             wn2

Real Estate Tax                                                                         2,500

Interest on Mortgage                                                                  4,500

Gifts to Charity                                                                         3,500

Unreimbursed Job Expeses(FORM 2106)                                10,905

Total Itemized wise Deduction                                                21,405

                                                                     wn1

Income from rubbery toy boat                                                15,000

Less cost  

Cost of suppies                                                                                5000  

Business phone call                                                                        3500  

Cost of suppies                                                                                 500  

Total                                                                                       9000

Total Business Income                                                                6,000

Less- FORM 8829 Expeses                                                         3211

Business Income-                                                                       2,789

                                                             FORM 2106

Car expenses                                              9990  

Travelling Expense                               665  

Meal Expenses                                                                         5500

Total                                                        10655                         5500

Less Reimbursement                                                                  5000

Total                                                        10655                            500

Expenses Allowed                                  10655                          250

Total                                                                                       10905

                                                               FORM 8829

25% is used for Business  

Income from buisness                                                                   6000

Mortgage Interest'                                                                           -1125

Reat estate tax                                                                           -625

Utility Bills                                                                                   -500

Depreciation                                                                                   -961

Total Business Income                                                                  2789

Calculate depreciation  

Lesser of fair market value or adjusted cost                        1,70,000

Less - value of Land                                                               -20,000

Total                                                                                       1,50,000

Basis of building                                                                        37,500

rate of depreciation                                                                2.56%

                                                                                                              960