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Form 1040 0.8. INTERNAL REVENUB

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INDIVIDUAL INCOME TAX RETURN | Do Not Write in These Specta

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(State)

2. S. Spangler.

By... (Name)

(Cashier's Stamp) 444 Liberty

(Street and number, or rural route)
Pittsburgh Allegheny. Pennsylvania
(Post oftice)
Cools)

Cash Check M. O. Cart. d Ind.

Trading OCCUPATION, PROFESSION, OR KIND OF BUSINESS. 1. Are you a citizen or resident

2. If you filed a return for 1923, to Yog

3. Is this a joint return

Pittsburgh of the United States? ... what Collector's office was it sent?

of husband and wife? ...Xes... Were you married and living with husband

8. If not, were you on the last day of your taxable year supporting one more persons of wife on the last day of your taxable year?

Yes living in your household who are closely related to you by blood, marriage, or adoption? & If your status in respect to questions

7. How many dependent persons (other than husband or wife) under 18 years of 4 and 5 changed during year,

age or incapable of self-support because mentally or physically defective were state dato of such change... receiving their chief support from you on the last day of your taxable year? .....

One INCOME

mount received

(tolnia Babedule 1. Salaries, Wages, Commissions, etc. (State nate and addrie of person from whom moeived) Salary (Spangler and Bowman, Pittsburgh, P8.). $. 5250.00....

525000 Compensation as Trustee (G. L. Spangler Estate). 500.00 86.75

413 25 Directors' Fees

65..20..

65.00

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913014891 19. Earned Income (see Instruction 19).. $ 2.000.0.1.00. 30. Net Income (Item 18 above).

41. Normal Tax (2% of Ite.. 37)..

80.00.. 20. Less Personal Exemption And Credit

31. Loss Dividends (Item 5436375

290000 for Dependente.......

7 above)..........

42. Normal Tax (4% of Item 39)......

160 po 32. Interest on Liberty 21. Balanco (Item 19 minus 20)

7100100
Bonds, ctc. (Item 8).

43. Normal Tax (6% of Item 40).......... 389.3.11 22. Amount taxable at 2% (not over

44. Surtax on Item 18 (co Instruction

2500bo 4000100 33. Personal Exemption...

30) the first $4,000 of Item 21) .....

281.75.12 23. Amount taxable at 4%. (not over

40000 3100100 31. Credit for Dependents.

45. Adjustment for Capital Gain or Loss the second $4,000 of Item 21)..

(1243% of Column 9, Schedule D). 24. Amount taxable at 6% (balance None

6726375

35. Total of Items 31, 33, and 34..... over $8,000 of Item 21).

46. Total of Items 41 645

s 32308 21 25. Normal Tas (2% of Item 22).. 8000 26. Balance (Item 30 minus 35).

72885016 47. Less Credit of 25% of Tax on Earned
Net Incoine (Item 29).

52 bo 28. Normal Tax (4% of Item 23). 124 100 37. Amount taxable at 2% (not over

400000 the first $4,000 of Item 36)

48. Total Tax (Item 46 minus 47) s 3225721 27. Normal Tax (8% of Item 24)......... None

6888516 49. Less Income Tax paid at source.

38. Balance (Item 36 minus 37) 28. Normal Tax on Earned Net Income

50. Income and Profits Taxes paid to a (total of Items 25, 26, and 27)... 204 00 39. Amount taxable at 1% (not over

400000 the second $1,000 of Item 36)

foreign country or U.S. possession 30. Credit of 25% of Item 28 (not toer.

6488516

51. Balance of Tax (Item 48 minus 51 og 40. Amount taxablo at 6% (balance

Items 49 and 50)..............

32257 21 ceed 25% of Items 41, 42, and 43). S

over $8,000 of Item 36) An amended return must be marked "Amended" at top of return

Checks and drafts will be accepted only if payable at par

(Reproduction of Page 1 of Return)

SCHEDULE A-INCOME FROM BUSINESS OR PROFESSION (See Instruction 2)

1. Total receipts from business or profession (state kind of business).

Cost or Goods SOLD

2. Labor...
8. Material and supplies.
4. Merchandise bought for sale
8. Other costa (itemize below or on separate sheet)
6. Plus inventory at beginning of year.....
7., TOTAL (Lines 2 to 6, inclusive).
8. Loss laventory at end of year.
. Nor Cost or Goods SOLD (Line 7 minus Line 8)...

OTHER BUSINESS DEDUCTIONS
10. les,

of "Labor," reported on Line 2,
and compensation for your own services...
11. Interest on business indebtedness to others...
12. Taxes on business and business property:
13. Losses by fire, storm, etc. (explain in table

provided
therefor at foot of page)
14. Bad debts arising from sales.....
15. Depreciation, obsolescence, and depletion (explain

in table provided therefor at foot of page)
16. Rent, repairs, and other expenses (itemized below or

on separate sheet)
17. TOTAL (Lines 10 to 16, inclusive)........
18. TOTAL DEDUCTIONS (Line 9 plus Line 17)
19. NET INCON (Line 1 minus Line 18) (Enter aa Item 2

theplanation of deductions Glamod on Lines 5 and 16.

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Explanation of deductions claimed in Column 7..

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Taxes-$228.60
SCHEDULE C-PROFIT FROM SALE OF REAL ESTATE, STOCKS, BONDS, ETC. (See Instruction 6)

3. AMOUNT RECEIVED PREVIOUSLT ALLOWED
1. DETRATION

& VALUE AS OY
2. DATE ACQUIRED

7. BONSEQUENT 6. Cost

MARCH 1, 1912 IXTROVEMENTS

1. ECOND OT PROPERTY

& NET PROFIT (Enter as Itam )

Corn. Dats...Rye....ete....
Stook
Stook
Bonds

1067 56
11237 66 (Less $1100.00. Gein Previous to 3/31/13).
7149210

66320 35
11739150

12855 00

206756 1013766

517175 -1115/50

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Btate hor property
Wag soquired..
SCHEDULE D CAPITAL NET GAIN OR LOSS FROM SALE OF ASSETS HELD MORE THAN TWO YEARS
2. DATE 2. DATE

3. DEPRECUATION
1. DID

7. VALUE AS Or
PROPERTY
ACQUIRED BOLD
LAYOUNT RECEIVED

« Cog
PREVIOVALI ALLOWED

MARCE 1, 1913

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No. Day Year Mo. Day Year

State how property
We sequired

SCHEDULE E-INTEREST ON LIBERTY BONDS AND OTHER OBLIGATIONS OR SECURITIES (See Instruction 8)

PRONCEAL 1. OBLIGATIONS OR SECURITIES

2. INTEREST RECEIVED

& AMOUNT OWNED

AMOUNT
QR ACCRUED
& AYOUT OWNED

ETEMPT FROM

DX RECESS or
TAXATION

BIEMPTIONS

& INTEREST ON AMOUNT IN EXCES

or EXEMPTIONS (Eator w Itata 8)

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IX

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All

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Liberty 35% Bonds and other obligations of United States issued before
Sept. 1, 1siz, and obligations of possessions of the United States...

All..
( Liberty 4% and 47% Bonds, Treasury 47% Bonds, Treasury Certificates, and
Treasury (War) Savings Certificates

$5,000 (6) Liberty 4% and 48% Bonds...

$50,000
Treasury Notes

Nono
EXPLANATION OF DEDUCTION FOR LOSSES BY FIRE, STORM, ETC., CLAIMED IN SCHEDULE A, AND IN ITEM 13
1. EIND OT PROPERTI

2 DATE ACQUID

Cost

4. VALUE 13 OF 5. SCASEQUENT 6. DEPRECIATION 7. INSURANCE AND
Marca 1. 1913

IXPROYEVENTS PREVIOUSLY ALLOWED SALYAOE VALGE

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SCHEDULE F-EXPLANATION OF DEDUCTIONS CLAIMED IN ITEMS 1, 12, 14, AND 15
Item 1: Port100 of Trustees Current.xp.ANANA.

86.75 Item 12: Taxos - Property. 3590.29 - Luxury... $126.90 . club. Dyes...$39.. 33.

Total

755.62 Item 14: Bad Debts Fitten Off During the Year

550,00 Item 15: Contributions to Educational and Charitable Corporations

22967.45 AFFIDAVIT I swear (or aflirto) that this return, including the accompanying schedules and statements (if any), has been examined by me, and, to the best of my knowledge and belief, is a true and cotaplete return mado in good faith for tho taxabie year as stated, pursuant to the Revenue Act of 1924 and the Regulations issued under authority thereof..

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INCOME TAX QUESTIONS AND PROBLEMS

1. Distinguish between allowable deductions and credits and explain how each should be classified in the Income Tax Return for an individual.

2. An analysis of the accounts kept by Henry Cameron shows that he has received dividends during the taxable year as follows:

(a) A cash dividend received from the American Steel Company, a domestic corporation, which is itself subject to the income tax. . $1,400.00

(b) A stock dividend received from the Wheeler Manufacturing Company, a domestic corporation, which is itself subject to the income tax...

800.00 (c) A cash dividend received from the Canadian Milling Company, a foreign corporation, which secures more than 50% of its income from sources within the United States.. 1,750.00

(d) A cash dividend received from the London Express Company, Ltd., a foreign corporation, which receives no income from sources within the United States...

400.00

$4,350.00 How should each of these dividends be classified on Mr. Cameron's Income Tax Return?

3. Under what condition may interest received from obligations of the United States be taken as a credit in computing the normal tax?

4. Under what conditions is a taxpayer entitled to the following credits ?

(a) A personal exemption of $1,000.00?
(b) A personal exemption of $2,500.00?
(c) An exemption of $400.00?
5. Distinguish between the normal tax and surtax.

6. (a) Is it necessary for individuals who have an income in excess of the credits allowed by Law to pay a normal tax?

(b) What amount of net income is an individual entitled to receive without becoming liable to the surtax?

7. If H. C. Hewitt has a gross income of $1,600.00 for a period of nine months, what is the amount of his annual income under the Income Tax Law?

8. When should the income tax be paid?

9. If Mary Whitaker files an Income Tax Return for the current calendar year and elects to pay the tax on an installment basis, on what dates will it be necessary for her to pay each installment of the tax?

10. What is the purpose of an Income Tax Working Sheet?

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II.

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Irwin Bell is a married man with three small children. His gross income for the current year amounts to $4,000.00 while he claims $1,500.00 as allowable deductions. Should he file a return? If so, what is the amount of his taxable income? If any tax is to be assessed compute the amount. 12.

George Vine, who is a married man, has a net income of $4,500.00 for the current year. His wife has an income of $1,450.00 from services. His daughter, who will be eighteen years of age next March, earns $940.00 as a stenographer. Assuming that the husband and wife unite in filing a single joint return, compute the amount of tax to be paid.

Charles Springer is a single man and has a net income of $5,000.00 per year. His father, who is totally blind is dependent upon him for support. Anna Springer, his fifteen year old sister, is also dependent upon him. Both live with him. What exemption can Charles Springer claim in filing his Income Tax Return? Compute the tax.

14. A widowed mother died, leaving three children under 15 years of age. Herbert Esser, an unmarried uncle, took charge of the children on January 1, of the current year, and supported them during the year, maintaining them in his own household.

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Mr. Esser's Income Consisted of:
Dividends Received from Corporations.

$10,000.00
Interest Received on $5,000.00 Fourth Liberty 474% Bonds 212.50
Net Income from Farming Operations.

4,000.00 Total Income.

$14,212.50

Prepare Mr. Esser's Income Tax Statement.

15. Harry Greber, a single man, has a taxable income of $30,000.00 for the current year. He also has the following expenses: Taxes on Home....

$ 210.00 Interest on Mortgage.

850.00

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16. I. S. Sunday is cashier of The Fort Wayne National Bank. He is a married man and has a child seven years old. He keeps no books, but from such information as is available, he submits the following statement of cash receipts and expenditures:

Receipts
Salary for the Fiscal Year Ending Dec. 31..

$3,800.00 Interest on First Liberty 372% Bond (500 par)

17.50 Interest on Third Liberty Loan 474% Bonds (1000 par)

37.50 Interest on Fourth Liberty Loan 474% Bonds (1000 par) 47.50 Bonus from The Fort Wayne National Bank..

400.00 Total..

$4.302.50

Payments
Rent of House for the Year...
Wearing Apparel...
Donations, $2.50 per month to Church.
Automobile Expenses (including license $15.00).
Medical and Dental Services..
Property Tax..
Miscellaneous Personal Expenses.

Total.....

$ 780.00

300.00

30.00 120.00 35.00 40.00 200.00

$1,505.00

On a basis of the facts given above, prepare a Statement of Mr. Sunday's Income Tax for the current year.

17. Mr. Richard Roe, a married man, requests you to prepare his Federal Income Tax Return. Owing to a change in his taxable period, it is necessary for him to file a return for a period of ten months ending December 31 of the current year. The following information was ascertained from an audit of his books.

Income Received During the Year
Salary..

$5,000.00 Directors' Fees..

105.00 Rent of Property (net).

7,596.54 Interest on Investments.

1,648.32 Dividends on Bank Stock...

2,500.00 Dividends on Stock Held in Industrial Companies.

11,500.00 Dividends on Stock of a Corporation Organized and doing Business in a Province of Canada.....

1,500.00 He Has Paid Out: Interest on his Personal Indebtedness..

2,500.00 Taxes on Income-Producing Real Property

1,600.00 Taxes on Real Property not Producing Income.

400.00 Personal Household Expenses..

2,500.00 He Also Reports: Loss of a Dwelling House, by fire, from which he had received Rents, no Insurance being carried...

1,200.00 Judgment rendered against him in his suit to collect on

the past due note of Harry Hanson:
Principal.

$2,000.00
Interest.

320.00 Legal Expenses..

150,00 2,470.00 Prepare statement showing computation of tax.

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