REQUIRED – Due November 16, 2004Individual 2003 Tax Return ProjectJan Morgan is age 32 and Ben Morgan is age 37. She is a freelance writer and he is an advertising executive. The couple lives at 132 Stone Avenue, Pleasantville, NM 17196. Her social security number is 189-57-6691 and his social security number is 667-58-3467. Jan does not desire to contribute to the Presidential Election Campaign Fund because she was not happy with this year’s election results, but Ben does want to contribute. The Morgan’s have three children. Susan is age 20 (ss#512-36-3690) and is an assistant manager of a dry-cleaning store located in Pleasantville, NM earning $20,000 in 2003. She lives at home and puts her entire paycheck into a savings account. Stuart is age 24 (ss#578-36-3324) is a full time student at MIT. His parents pay for his tuition, his expenses, and provide a car for him. In 2003 he did not work but he had $2,000 of interest income. Alicia is age 13 (ss#512-44-8759) and has $1,800 of interest income. The Morgan’s also provide over half of the support for Ben’s father, Matt Morgan, who is age 68 (ss#568-72-6051). Matt does not live with Harold and Helen.Matt’s only source of income is $8,900 of social security income. Jan and Ben elect to report anykiddie tax that applies to their children on their tax return.Ben earned a salary of $230,000 as an advertising executive in 2003. His employer withheld $25,000 in Federal income tax, $3,500 in state income tax, and the appropriate amount of FICA tax. Ben earned a bonus of $15,000 in addition to his salary for best advertisement campaign in 2003, but did not receive the bonus check until January of 2004. Also, not included in his wages are the following items:Medical Insurance $3,500Employee achievement award – weekend in NYC $1,000 (value)Cost of lunches provided for department meetings $250In January 2003, Jan opened her own business office located at 2751 Waldham Road, Pleasantville, NM 17196. She called her business Writers Anonymous, which is a sole proprietorship. Jan is a cash basis taxpayer. During 2003, Jan had the following income and expense items connected with her business:Income from sales of articles $85,000Rent expense 10,600Utilities 1,950 Supplies 2,200Insurance 850Property taxes on her car 300Travel (including $1,200 of meals) 4,500Jan paid herself $20,000 from the profits and left the remaining cash in the business for operating expenses.Jan purchased and placed in service the following fixed assets for her business:- Furniture and fixtures costing $19,000 on January 10, 2003- Computer equipment costing $40,000 on July 28, 2003- Automobile costing $37,000 on January 18, 2003. Her total mileage for the year was 7,000 miles and she used the car 60% for business purposes and 40% for personal purposes.Jan would like to take the highest amount of cost recovery deductions available to her.Ben is a partner in The Grapevine partnership. The partnership earned $50,000 of net taxable income that was classified as ordinary income. Ben is a 50% partner and withdrew $35,000 in cash during the year.The following was paid out of the Morgan’s checkbook:Dentist bill for Susan 450Automobile insurance premiums 3,700Subscription to Professional magazine 80Political contribution to Governor’s campaign 400Personal interest on VISA credit card 660Real estate taxes 4,500Mortgage interest 6,900Unreimbursed prescription drugs 350Tax return preparation fees 450Dues to Gold’s Gym for aerobic classes 500Cash contribution to church 5,000Personal auto property tax 235Securities sold during the year included 100 shares of Seal Corporation, which was sold for $7,400 on May 7 and purchased on June 6, 1999 for $6,000. The Morgan’s also sold 500 shares of Luke Corp. on March 4 for $8,800. They purchased the stock on 11/12/92 for $14,000.Jan’s mother died on October 7, 2003. Jan inherited assets worth $500,000 from her mother. As the sole beneficiary of her mother’s life insurance policy, Jan received insurance proceeds of $100,000. Her mother’s cost basis for the life insurance policy was $60,000. Jan’s favorite aunt gave her $20,000 for her birthday. Jan also has a racehorse named Trooper. Trooper’s stable fees are $1,000 per month. Trooper is getting older and, while he used to win more races, he won only one race in 2003 earning $10,000. This activity is properly classified as a hobby.REQUIRED – Due November 16, 2004Prepare a tax return with all supporting schedules and any computations for depreciation and tax liabilities for the year 2003. Returns must be handwritten (i.e., no computer generated tax returns). Assume there are no interest and penalties and no alternative minimum tax. List any other assumptions you must make when preparing the