Peterson Tax Return(Federal Tax Accounting 1)

Can you help me understand this Accounting question?

PREPARE TAX RETURNS FOR 1) Kyle Peterson and 2 )Loretta Smith

  • Answer the six questions at the end of the problem. Show your computations.
  • Fill out forms 1040 Page 1 and 2, Schedule 1, Schedule 3, Schedule A, Schedule B, Schedule D
  • Attach Loretta’s 1040 Tax Return.
  • For purposes of this tax return you do not need to calculate: 1) the self-employment tax; 2) the Net Investment Income Tax; 3) the phase-out of the child-tax-credit and the other-tax credit; 4) any adjustments or phase-outs to the 20% QBI tax or 5) any educational credits.
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