Tax Return #3 Instructions Please prepare, without the help of tax software, Form 1040 for Paul Reasor. (Any likeness to a real person is coincidental. Paul Reasor is made-up, and so are his address, social security number, and any other details about him.) You might need the following information about Paul: Name: Paul Reasor Address: 1440 Tenth Ave. Dallas, TX XXXXXXXXXXPaul lived at this address all of XXXXXXXXXXSS#: XXXXXXXXXXDate of Birth: 01/25/1985 Employment: Paul was self-employed all of 2017. He opened his business on January 1, 2017. His business is called Best Comic Books. He sells comic books, graphic novels, board games, collectible card games, and other similar products. Best Comic Books’ address is 1330 Inwood Rd, Dallas, TX XXXXXXXXXXIncome & Deductions: Best Comic Books had the following income and expenses. You may assume that all expenses, if deductible, properly related to the business: (1) Revenue for the sale of comic books and other inventory: $100, XXXXXXXXXXBest Comic Books spent $70,000 purchasing the products it sells (e.g., comic books, etc.). On December 31, 2017, Best Comic Books still had $30,000 of the products in inventory. (3) Wages paid to Best Comic Books employees (not Paul himself): $15,000 (including payroll taxes). (4) Rent paid to Best Comic Books’ landlord: $6, XXXXXXXXXXInsurance premiums for general liability paid to State Farm: $1, XXXXXXXXXXAmount paid to Cleaning, Inc., to clean the store every two weeks: $2,000 for the year. (7) Amount paid to Facebook and Google for advertising: $5, XXXXXXXXXXPaul drove his personal vehicle to conduct all Best Comic Books business. He drove a total of 20,000 miles for the year. Of those miles, 4,000 were for commuting and personal reasons, and 16,000 were for business purposes. Paul kept a log to document the mileage but did not keep track of the actual vehicle expenses. (9) Paul flew to San Diego, California, for a comic books convention (for business reasons). He spent two days at the convention and three days sightseeing. The trip expenses were as follows: $1,000 in flight tickets, $500 in lodging expenses ($100 per day), and $400 in meals ($80 per day XXXXXXXXXXPaul spent $2,000 in health insurance for his own coverage. (11) Best Comic Books donated $1,500 to the Salvation Army, in cash. (12) Best Comic Books didn’t make any payments that would require the business to issue a Form XXXXXXXXXXPaul had no itemized deductions (other than any deduction listed above).