Tax Return Assignment Rutgers - Spring 2017 – Larson 1 Instructions: Please complete the 2016 federal income tax return for Joseph and Diana Cohen. Ignore the requirement to attach the form(s) W-2 to the front page of the Form 1040. If required information is missing, use reasonable assumptions to fill in the gaps. Information and Background: Joseph and Diana Cohen live in Pleasantville, New Jersey. Joseph is the Vice-President of Sales at a small start-up company. Diana is a former advertising executive who currently consults with former clients. She also serves on the board of directors of an advertising company. The Cohens have three children Rebecca (age 18), Alan (age 15), and David (age 12). In January, Rebecca left home to attend a liberal arts college. All three children qualify as Joseph and Diana’s federal income tax dependents. The Cohens plan to file a joint tax return. The Cohens provided the following information:  Joseph’s social security number is 598-94-2583  Diana’s social security number is 301-52-2942  Rebecca’s social security number is 887-44-8710  Alan’s social security number is 810-42-9092  David’s social security number is 855-11-3021  The Cohen’s mailing address is 85 North Maple Drive, Pleasantville, New Jersey 08233 Joseph Cohen reported the following the following information relating to his employment during the year: Employer Gross Wages Federal Income Tax Withholding State Income Tax Withholding Alternative Energy $118,325 $29,230 $15,000 The above amounts do not reflect any income items described below. Joseph’s employer withheld all payroll taxes it was required to withhold. The entire Cohen family was covered by minimum essential health insurance during each month in 2016. The insurance was provided by Joseph’s employer, Alternative Energy. Diana Cohen received the following revenue during the year (she uses the cash method of accounting). Consulting revenue reported to her on a Form 1099-MISC, Box 7 High-end Retail $32,000 Jensen’s Health Products $ 8,500 Strategic Solution s $ 3,750 Board of director compensation reported to her on a Form 1099-MISC, Box 7 Natural Sunshine, Inc. $ 6,500 Tax Return Assignment Rutgers - Spring 2017 – Larson 2 During the year, Diana paid the following business expenses: Consultant-related: Airfare $2,900 Hotel $1,450 Meals $ 390 Parking $ 320 Diana drove 290 business miles for her consulting-related activities (she has documentation to verify) Board of Director-related: Meals $ 125 Hotel $ 225 Diana drove 315 business miles for her board of director activities (she has documentation to verify) Neither of Diana’s business activities required the filing of Form(s) 1099 to report payments she made during the tax year. In addition, Ms. Cohen drove a 2014 Lexus purchased on January 1, 2014 for all ...

1. Tax Return Assignment
Rutgers - Spring 2017 – Larson
1
Instructions:
Please complete the 2016 federal income tax return for Joseph
and Diana Cohen. Ignore the requirement to
attach the form(s) W-2 to the front page of the Form 1040. If
required information is missing, use reasonable
assumptions to fill in the gaps.
Information and Background:
Joseph and Diana Cohen live in Pleasantville, New Jersey.
Joseph is the Vice-President of Sales at a small start-up
company. Diana is a former advertising executive who currently
consults with former clients. She also serves on
the board of directors of an advertising company. The Cohens
have three children Rebecca (age 18), Alan (age
15), and David (age 12). In January, Rebecca left home to
attend a liberal arts college. All three children qualify
as Joseph and Diana’s federal income tax dependents. The
Cohens plan to file a joint tax return. The Cohens
provided the following information:
-94-2583
-52-2942

2. -44-8710
-42-9092
-11-3021
Pleasantville, New Jersey 08233
Joseph Cohen reported the following the following information
relating to his employment during the year:
Employer Gross Wages Federal Income Tax
Withholding
State Income Tax
Withholding
Alternative Energy $118,325 $29,230 $15,000
The above amounts do not reflect any income items described
below. Joseph’s employer withheld all payroll
taxes it was required to withhold. The entire Cohen family was
covered by minimum essential health insurance
during each month in 2016. The insurance was provided by
Joseph’s employer, Alternative Energy.
Diana Cohen received the following revenue during the year
(she uses the cash method of accounting).
Consulting revenue reported to her on a Form 1099-MISC, Box
7
High-end Retail $32,000
Jensen’s Health Products $ 8,500
Strategic

3. Solution
s $ 3,750
Board of director compensation reported to her on a Form
1099-MISC, Box 7
Natural Sunshine, Inc. $ 6,500
Tax Return Assignment
Rutgers - Spring 2017 – Larson
2

4. During the year, Diana paid the following business expenses:
Consultant-related:
Airfare $2,900
Hotel $1,450
Meals $ 390
Parking $ 320
Diana drove 290 business miles for her consulting-related
activities (she has documentation to verify)
Board of Director-related:
Meals $ 125
Hotel $ 225
Diana drove 315 business miles for her board of director
activities (she has documentation to verify)
Neither of Diana’s business activities required the filing of
Form(s) 1099 to report payments she made during the
tax year. In addition, Ms. Cohen drove a 2014 Lexus purchased
on January 1, 2014 for all her business mileage.
She drove the vehicle a total of 10,605 miles during the year for

5. all purposes. Diana has written documentation
to support the mileage amounts. She also has access to another
vehicle for personal purposes.
The Cohens also received the following during the year:
200
rporate bond $ 400
d dividend income from Union Pacific $ 140
bs $ 275

6. The Cohens did not own, control or manage any foreign bank
accounts nor were they a grantor or beneficiary of
a foreign trust during the tax year.
The Cohens had the following activity in their brokerage
account during the year (all transactions were reported
on a Form 1099-B. Basis information on each stock sale was
reported to the IRS):
Tax Return Assignment
Rutgers - Spring 2017 – Larson
3
50 shares of Union Pacific 1/7/16 $ 2,750

7. gg 10/14/16 $21,000
Relevant tax basis/holding period information related to sales of
securities in the current year:
urchased 300 shares of Cooper Tire on 1/12/2013 for $9,000
as a gift on 10/10/00. Her father’s
basis in the stock at the time of the gift was $7,000. Fair market
value of the stock at the date of the
gift was $41,000
The Cohens have a $43,000 long-term capital loss carryover
from their prior tax year.

8. The Cohens received a New Jersey state income tax refund of
$400 in May of 2016. The Cohens received the
refund because they had overpaid their New Jersey state
individual income tax in 2015. On their 2015 Federal
income tax return, the Cohens deducted and received tax benefit
for all the state tax income taxes they paid in
2015.
Diana is a 10% owner in an advertising agency named Bright
Ideas (“BI”) (EIN 20-1234567). BI is a Subchapter S
corporation. The company reported ordinary business income
for the year of $150,000. Diana received a K-1
from BI reporting her allocation of this business income. Sarah
acquired the stock several years ago. Her basis in
the stock before considering her 2016 income allocation was
$92,000. Sarah is a passive owner with respect to
this entity.
Diana is also a 20% owner in Natural Sunshine, Inc. (“NS”)
(EIN 24-9876543). NS is a Subchapter S corporation.
The company reported an ordinary business loss for the year of
($80,000). Diana received a K-1 from BI
reporting her allocation of this business loss. Sarah acquired the
stock several years ago. Her basis in the stock
before considering her 2016 loss allocation was $45,000. Sarah

9. is a passive owner with respect to this entity.
Joseph received 5,000 shares of restricted (common) stock from
his employer on July 1, 2016. The terms of the
restricted stock grant are such that if Joseph is still employed
by Alternative Energy on July 1, 2021 the entire
5,000 shares will vest and become his property. Joseph, upon
the advice of his tax advisor, prepared and filed an
IRC Section 83(b) election on July 8, 2016. On July 1, 2016,
shares were valued at $5 per share. Joseph estimates
the value of the shares in five years will be at least $150 per
share. Joseph notified Alternative Energy about the
Tax Return Assignment
Rutgers - Spring 2017 – Larson
4
IRC Section 83(b) election in a timely manner. None of the
income tax consequences of this restricted stock
grant was included in the $118,325 reported as part of Joseph’s

10. gross wages (see above).
In May, Joseph was injured in a home accident. The injury
prevented Joseph from working for about a month.
During this time, Joseph received $15,000 in disability
payments attributable to a disability insurance policy. The
disability policy premiums were paid on Joseph’s behalf as a
nontaxable fringe benefit.
The Cohens paid the following expenses during the year:
ptions (unreimbursed by insurance) $ 675
bution to United Way $ 2,000
project $ 500
Hintze CPAs for tax

11. preparation $ 450
The Cohens also donated clothing, electronics, furniture and
other household goods to the Salvation Army of
Pleasantville, New Jersey on April 15, 2016. Estimated thrift
value of the goods donated was $275.
Miscellaneous Information:
On September 1, the Cohens paid $200 in foreign taxes
attributable to the dividend received from the China
Fund.
During the year, the Cohens paid a portion of Rebecca’s tuition
to attend The College of Liberal Arts of New
Jersey (CLA). They also purchased Rebecca’s school books.
Rebecca attended the spring/summer and the fall
semesters as a full-time student. In total, the Cohens paid
$9,000 for tuition and $2,000 for books. Rebecca used
$6,000 from a scholarship she received from CLA to pay the
remaining $6,000 of tuition for the year. Rebecca
was not required to perform any services as a condition of
accepting the scholarship. Rebecca was not employed
during the year. CLA’s address and employer identification

12. number (EIN) is as follows:
The College of Liberal Arts of New Jersey
65 Ivory Tower
Penns Grove, NJ 08069
EIN- 22-5698324
The Cohens would like to contribute to the Presidential Election
Campaign. The Cohens would also like to
receive a refund (if any) of tax they may have overpaid for the
year. Their preferred method of receiving the
refund is by check.
Emerging Industry: 3D printing
Write clear and concise answers and limit your response to 750
words per question. No late exams will be accepted. You must
work independently and cite all your sources.
1) Clearly define your chosen emerging industry in your own
words and prove it is emerging by showing and interpreting
evidence, e.g. growth in patents, customers/users, jobs,

13. government investment, private investment, number of firms,
sales, employees, etc. over time – from near the beginning of
the industry to the present.
2) Choose one ethical dilemma that is relevant to your chosen
emerging industry and address how this dilemma is influencing
industry emergence and what could be done to address this
dilemma in order to increase industry emergence.
3) Describe the structure of your emerging industry, i.e.
distribution of companies by size, strategy, and location, and
assess how its structure affects competition, innovation, and
industry emergence.
*4 steps to answer question 3.
-companies in the industry
-firm’s strategy.
-structure of industry. (diagram etc.)
-analyze structure