Thomas Able, a cash method, calendar-year taxpayer, died December 1, 2019. He is survived by his spouse, Nan. Tom was age 65 at the time of his death and Nan is age 66. They have no dependents, and Nan is the sole beneficiary of Tom’s estate. Nan has been blind from cataracts since taking a tax course at Georgia Southern University in 1989. The executor of the estate is the First Wachovia Corp., Winston-Salem, North Carolina. Nan and the executor elected to file a joint return for 2019.

During 2019, the following cash receipts, disbursements, and expenses were recorded by the Ables and the estate of Tom Able:

a. Cash dividends of $25,000 from SafHlower Oil Corporation were received on November 28, 2019. These dividends were declared on November 3, 2019, and payable to shareholders of record on November 14, 2019. Tom Able was the stockholder in Safower Oil Corporation.

b. Tom was an executive in the Kane & Able Trucking Company in Winston-Salem, North Carolina, and for the two months preceding his death, Tom was not paid his monthly salary of $5,000 because of a moratorium on wages. On January 5, 2020, the trucking company paid the $10,000 to the executor of the Tom Able Estate. Tom had received all his other monthly salary payments at the end of each month.

c. Interest of $1,800 was credited to Tom and Nan’s savings accounts on August 1, 2019.

d. Real estate taxes of $1,000 were paid by the estate on December 31, 2019, for the calendar year.

e. Medical expenses of $5,700 related to Tom’s last illness were paid by his estate on January 20, 2020. The executor has elected not to deduct these medical expenses on the estate tax return. Health insurance premiums of $500 were paid by Tom during 2019.

f. A bonus of $4,500 from the Kane & Able Trucking Company was paid to Tom’s estate on January 16, 2020.

g. Charitable contributions of $1,200 were paid to the Ventura County Humane Society by Tom during 2019.

h. Interest on the Ables’ home mortgage amounted to $1,600 in 2019.

i. On May 29, 2019, Tom received $25,000 in life insurance proceeds paid by reason of the death of his mother.

j. Tom has always attended Saturday night cockfights. During 2019, he won $500 and lost $800.

k. On June 9, 2019, Tom submitted his entry in a Fairview Books Publishing Company contest. On August 1, 2019, it was announced that Tom had won $3,000 cash and a year’s worth offer computer research time worth $900.
Tom accepted the $3,000 but refused the computer research time because he had heard the system was difficult to use.
l. Nan and Tom sold stock that they had purchased on December 27, 2018, at $1,000 for $1,200 on June 24, 2019.

m. Tom also owned a farm that produced total annual revenue of $1,000 and expenses of $100 for utilities, $200 for fertilizer and lime, $100 for miscellaneous expenses, $100 for repairs and maintenance, and depreciation expense of $200 in 2019 prior to Tom's death. The farm has been idle since Tom's death.

n. Tom and Nan kept meticulous records verifying the $1,500 they paid in sales tax in 2019.

o. Federal and state income taxes of $9,900 and $2,000, respectively, were withheld from Tom's salary in 2019.

p. Tom and Nan had a $500 balance due on their 2018 North Carolina return that was paid on April 12, 2019.

Required: 

Compute the amount of taxable income that will go on the decedent’s final return.