Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com. Though Ken is retired, he is still very active. Ken reported the following financial information this year. Assume Ken files as a single taxpayer.
- Ken won $1,620 in an illegal game of poker (the game was played in Utah, where gambling is illegal).
- Ken sold 1,420 shares of stock for $32 a share. He inherited the stock two years ago. His tax basis (or investment) in the stock was $31 per share.
- Ken received $29,200 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $245,280.
- Ken received $14,050 in disability benefits for the year. He purchased the disability insurance policy last year.
- Ken decided to go back to school to learn about European history. He received a $920 cash scholarship to attend. He used $510 to pay for his books and tuition, and he applied the rest toward his new car payment.
- Ken’s son, Mike, instructed his employer to make half of his final paycheck of the year payable to Ken as a gift from Mike to Ken. Ken received the check on December 30 in the amount of $1,730.
- Ken received a $820 refund of the $4,020 in state income taxes his employer withheld from his pay last year. Ken claimed $12,870 in itemized deductions last year (the standard deduction for a single filer was $12,400).
- Ken received $34,200 of interest from corporate bonds and money market accounts.
Comprehensive Problem 5-75 Part 2 (Algo)
2. Complete page 1 of Form 1040 through line 9 and Schedule 1 for Ken.
It’s that simple.Pay only when you are satisfied.
Get Personalized Homework Help
Improve Your Grades Today
How It Works
1-Send us your Assignment requirements, attach and deadline for submission.
2-You will get a confirmation from us with a price quote.Pay us and be relax.
3-Your Completed task will be e mailed to you before agreed time.
Submit Your Assignment/Essay/Discussion/Term Paper/Final Exam or CaseStudy Detail
Available 24/7!
Send your academic problems,
Get instant Help only at Writerscampus!