Question

Comprehensive Problem 5-86 (LO 5-1, LO 5-2, LO 5-3) [The following information applies to the questions...

Comprehensive Problem 5-86 (LO 5-1, LO 5-2, LO 5-3)

[The following information applies to the questions displayed below.]

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.

  1. Ken won $1,200 in an illegal game of poker (the game was played in Utah, where gambling is illegal).
  2. Ken sold 1,000 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.
  3. Ken received $25,000 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $210,000.
  4. Ken received $13,000 in disability benefits for the year. He purchased the disability insurance policy last year.
  5. Ken decided to go back to school to learn about European history. He received a $500 cash scholarship to attend. He used $300 to pay for his books and tuition, and he applied the rest toward his new car payment.
  6. 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 $1,100.
  7. Ken received a $610 refund of the $3,600 in state income taxes his employer withheld from his pay last year. Ken claimed $12,050 in itemized deductions last year (the standard deduction for a single filer was $12,000).
  8. Ken received $30,000 of interest from corporate bonds and money market accounts.

Comprehensive Problem 5-86 Part b-1 [MUST MANUALLY GRADE]

b-1 Complete page 2 of Form 1040 (through line 6) for Ken.

Please right click on the attached Adobe document and select open in new window. Then, download the Tax Form and enter the required values in the appropriate fields. Save your completed Tax Form to your computer and then upload it here by clicking "Browse." Next, click "Save." (Use 2019 tax rules regardless of year on tax form.)

Homework Answers

Answer #1

Solution:

here is the solution..Thank you

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Problem 7-51 (LO 7-2) [The following information applies to the questions displayed below.] Three years ago,...
Problem 7-51 (LO 7-2) [The following information applies to the questions displayed below.] Three years ago, Adrian purchased 100 shares of stock in X Corp. for $10,000. On December 30 of year 4, Adrian sells the 100 shares for $6,000. (Leave no answers blank. Enter zero if applicable. Loss amounts should be indicated with a minus sign.) b. Assuming Adrian has no other capital gains or losses, except that on January 20 of year 5, Adrian purchases 100 shares of...
Problem 8-48 (a) (LO. 2, 5, 9) Burt purchased $58,000 of new computers for his business...
Problem 8-48 (a) (LO. 2, 5, 9) Burt purchased $58,000 of new computers for his business in May of the current year. Burt understands that if he elects to use ADS to compute his regular income tax, there will be no difference between the cost recovery for computing the regular income tax and the AMT. Burt wants to know the regular income tax cost, after three years, of using ADS rather than MACRS. Assume that Burt does not elect §...
Problem 7-42 (LO 7-2) [The following information applies to the questions displayed below.] Dahlia is in...
Problem 7-42 (LO 7-2) [The following information applies to the questions displayed below.] Dahlia is in the 32 percent tax rate bracket and has purchased the following shares of Microsoft common stock over the years: Date Purchased Shares Basis 7/10/2009 430 $ 14,190 4/20/2010 330 12,804 1/29/2011 530 14,098 11/02/2013 280 9,016 If Dahlia sells 890 shares of Microsoft for $47,170 on December 20, 2019, what is her capital gain or loss in each of the following assumptions? (Do not...
Problem 10-55 (LO 10-2; LO 10-3) [The following information applies to the questions displayed below.] Harris...
Problem 10-55 (LO 10-2; LO 10-3) [The following information applies to the questions displayed below.] Harris Corp. is a technology start-up and is in its second year of operations. The company didn’t purchase any assets this year but purchased the following assets in the prior year: Placed in Asset Service Basis Office equipment August 14 $ 10,000 Manufacturing equipment April 15 68,000 Computer system June 1 16,000 Total $ 94,000 Harris did not know depreciation was tax deductible until it...
Comprehensive Problem 1 [The following information applies to the questions displayed below.] On December 1, Year...
Comprehensive Problem 1 [The following information applies to the questions displayed below.] On December 1, Year 1, John and Patty Driver formed a corporation called Susquehanna Equipment Rentals. The new corporation was able to begin operations immediately by purchasing the assets and taking over the location of Rent-It, an equipment rental company that was going out of business. The newly formed company uses the following accounts. Cash Capital Stock Accounts Receivable Retained Earnings Prepaid Rent Dividends Unexpired Insurance Income Summary...
Problem 8-52 (c) (LO. 2, 5, 9) Shelby purchased $80,000 of new furniture and fixtures for...
Problem 8-52 (c) (LO. 2, 5, 9) Shelby purchased $80,000 of new furniture and fixtures for her business in July of the current year. Shelby understands that if he elects to use ADS to compute her regular income tax, there will be no difference between the cost recovery for computing the regular income tax and the AMT. Shelby wants to know the regular income tax cost, after three years, of using ADS rather than MACRS. Assume that Shelby does not...
Required information [The following information applies to the questions displayed below.] Pratt is ready to graduate...
Required information [The following information applies to the questions displayed below.] Pratt is ready to graduate and leave College Park. His future employer (Ferndale Corp.) offers the following four compensation packages from which Pratt may choose. Pratt will start working for Ferndale on January 1, year 1. Benefit Description Option 1 Option 2 Option 3 Option 4 Salary $ 60,000 $ 50,000 $ 45,000 $ 45,000 Health insurance No coverage $ 5,000 $ 5,000 $ 5,000 Restricted stock 0 0...
Required information Problem 15-15 Comprehensive Ratio Analysis [LO15-2, LO15-3, LO15-4, LO15-5, LO15-6] [The following information applies...
Required information Problem 15-15 Comprehensive Ratio Analysis [LO15-2, LO15-3, LO15-4, LO15-5, LO15-6] [The following information applies to the questions displayed below.] You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company’s financial statements, including comparing Lydex’s performance to its major competitors. The company’s financial statements for the last two years are as follows: Lydex Company Comparative Balance Sheet This Year...
Textbook: Spiker Taxation of Individuals Comprehensive Problem 6-68 (LO 6-1, LO 6-2, LO 6-3) [The following...
Textbook: Spiker Taxation of Individuals Comprehensive Problem 6-68 (LO 6-1, LO 6-2, LO 6-3) [The following information applies to the questions displayed below.] Read the following letter and help Shady Slim with his tax situation. Please assume that his gross income is $172,900 (which consists only of salary) for purposes of this problem. December 31, 2017 To the friendly student tax preparer: Hi, it’s Shady Slim again. I just got back from my 55th birthday party, and I’m told that...
Required information Problem 15-46 (LO 15-3) [The following information applies to the questions displayed below.] Amanda...
Required information Problem 15-46 (LO 15-3) [The following information applies to the questions displayed below.] Amanda would like to organize BAL as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is expected to generate an 8 percent annual before-tax return on a $500,000 investment. Amanda’s marginal income tax rate is 37 percent and her tax rate on dividends and capital gains is 23.8 percent (including the 3.8 percent net investment income...