Danae Coleman is single and lives at 5411 Melbourne Avenue, Chicago, IL 60455. She is a supervisor and her SSN is 412-34-5670. Using the following information, complete her tax return for 2017:

Kimber Company W-2:
Gross	$	90,000
Social security tax		5,580
Medicare tax		1,305
Federal withholding tax		17,300
State withholding tax		2,700
Lee Company W-2:
Gross	$	22,500
Social security tax		1,395
Medicare tax		326
Federal withholding tax		2,300
State withholding tax		600
Danae has the following itemized deductions:
Real estate tax	$	7,633
Mortgage interest		8,445
Charitable contributions		3,000
Danae has the following investments:
1099-INT (Bank 1)	$	2,510
1099-DIV (Stock 1)
Ordinary dividends		2,389
Qualified dividends		1,963
Capital gain distribution		4,711
2016 short-term loss carryover		(1,000	)

Danae received a gift of 2,000 shares of FNP Inc. stock from her Aunt Jane on January 19, 2017. The basis of the shares to Aunt Jane was $4,300, and they had an FMV of $4,600 on the date of the gift. Aunt Jane purchased the stock on December 30, 2015. On June 30, 2017, Danae sold all the shares for $6,000.

Danae is an avid stamp collector and purchased a rare stamp on March 20, 2007, for $4,000. She sold the stamp for $6,000 on April 8, 2017.

Prepare Form 1040 and all related schedules, forms, and worksheets for 2017. Danae does not donate to the presidential election campaign. Danae is a manager at Kimber Company and had qualifying health care coverage at all times during the tax year.

Use the appropriate Tax Tables.

Answer rating: 100% (QA)

Form 1040 Sc... View the full answer