Marvin L. and Molly S. Hall are married and live at 310 Poplar Avenue, Fort Wayne, IN 46802. They file a joint return and are calendar year, cash...

Marvin L. and Molly S. Hall are married and live at 310 Poplar Avenue, Fort Wayne,IN 46802. They file a joint return and are calendar year, cash basis taxpayers.1. Marvin is a self-employed claims adjuster (professional activity code is 52490) for severalmajor casualty insurance companies. He maintains an office at 4230 Peony Street, Suite130, Fort Wayne, IN 46802. He shares the suite with several other professionals and hasno employees. A receptionist handles all calls and is provided by the landlord as part ofthe services offered to tenants. Marvin’s work-related expenses for 2009 are as follows:Office rent $8,100Utilities 3,000Accounting services 1,200Office expenses (supplies, use of copier, etc.) 1,100Legal services (see item 9 below) 300State and local license fees 900Renter’s insurance (covers personal liability, casualty, theft) 1,500Replacement of reception room furnishings (6/5/2009) 2,200Professional dues and subscriptions to trade publications 400Business lunches 1,400Contribution to H.R. 10(Keogh) plan 8,000Medical insurance premiums 5,000The business meals Marvin paid for were to entertain various visiting executivesfrom the insurance companies he does business with. As is the case with all of Marvin’sbusiness transactions, the lunches are properly documented and supported by receipts.Because the reception room furnishings were looking shabby, Marvin and his suite-mateshad them replaced. The $2,200 Marvin spent was his share (i.e., a sofa and coffee table)of the cost. Marvin follows a policy of avoiding depreciation by utilizing the § 179 election to expense assets. All of Marvin’s office equipment (e.g., desk, chairs, file cabinets,computer, etc.) have previously been expensed. Of 10,000 total miles in 2009, Marvin drives his car (a Ford Explorer purchased on 6/1/2007) 3,200 miles for business (not including commuting) and has business parking and toll charges of $310. The Halls use the automatic mileage method of claiming automobile expenses.Prepare taxes on Form 1040.