Ulysses and Ursula have three adult children Umberto Uriah a

Ulysses and Ursula have three adult children, Umberto, Uriah, and Umbria, who live on their own and fully support themselves. After the three children each graduated from college, they all got married and settled in the Schenectady/Albany area. Five years ago, in 2012, Ulysses and Ursula decided to \"downsize, but sll remain in the Schenectady/Albany area to be close to their childrern and grandchildren. During 2012, Ulysses and Ursula sold their large house and purchased a smaller house, the house in which they currently reside. They completed the purchase of their house orn 4576 Great Sacandaga Lake Circle on 7/31/2012. They spent $400,000 to purchase their current house: $300,000 for the dwelling, and $100,000 for the land. The fair market value equaled their adjusted basis. To buy the current house, they did not have to take out a loan. During 2017, Ulysses and Ursula made the following payments associated with their primary residence in Schenectady: S 2,000 1,500 taxes Property insurance Utilities 1,000 Ulysses and Ursula did not make any charitable contributions during 2017 Ursula worked for a motorcycle repair company for almost 20 years. However, in the fall of 2016, she had an argument with her boss and quit. During January 2017- March 2017, Ursula spent S51,000 exploring the feasibility of starting a motorcycle repair business. Ursula chooses to take the maximum allowed deduction in 2017 pertaining to the start-up costs. The new company commenced operations on April 1, 2017. Ursula calls her company Motorcycle Momma\'s Repair Shop. During 2017, Ursula received cash receipts from customers totaling $59,000. During 2017, she paid the following expenditures in connection with her business: Cost of a machine (5-year property Cost of new equipment (7-year property) Supplies Advertising fees Liability insurance premiums S 30,000 14,000 3,000 1,000 For the new equipment, Ursula elected not to expense any portion of the cost allowed under the provisions of S 179, but rather elected to take the maximum allowed depreciation. For the machine, Ursula elected to take 179 expense. The machine plus all the equipment were placed in service on April 1, 2017. The machine and equipment are used exclusively for business purposes. Ursula operates her business out of her home\'s garage. She uses the garage to store business supplies and to repair motorcycles. The garage totals 800 square feet, while the house, including the garage, totals 4,000 square feet. The garage is also used to park a personal automobile and to store personal items. Ursula estimates that half of the garage is used exclusively on a regular basis in the operation of Ursula\'s business. During April 2017, Ursula paid a painter $1,200 to paint the entire garage. Ursula uses the cash basis to account for revenues and expenses.

Solution

Dear Student. It is understandable that an accounting of income and expenses is mentioned above. But it is unclear as to what is to be calculated or accounted for. It is difficult to assume the correct calculations based on the figures and transactions above. You can add the necessary details and repost the question. You shall get precise answer. Thank you.