Eric Amoth (Social Security Number 551-11-1111) is 50 years old and married to Mary Amoth, age 34, (Social Security Number 552-45-6789). Formerly, Mary was Eric’s secretary, but quit work to raise their children. They live at 1313 Mockingbird Lane, Mockingbird Heights, CA 92506. They file a joint return and have two dependent children, Anakin, age 13 and Rey, age 14. Anakin’s social security number is 551-45-6888 and Rey’s social security number is 552-45- 6777. Neither is interested in helping to fund the Presidential Election Campaign Fund. Eric and Mary come to you for help with the preparation of their 2019 tax return and have provided the details for the following transactions:

Eric received $200,000 in salary from Red Steel Corporation, where he is a construction engineer. Federal withholding was $37,750 and the appropriate FICA and Medicare withholding was done. CA withholding was $15,100.

Eric’s mother passed away 6/22/2019. He received a parcel of land worth $50,000 on 6/22/2019, no alternative valuation date was elected. He sold the land on 12/24/2019 for $50,600. He also received life insurance proceeds in the amount of $150,000. He invested a portion of the proceeds from the sale into Disney stock for his three children. The value of the Disney stock at the time of purchase was $10,000 per child.

Eric and Mary received $10,400 from Los Angeles school district bonds.

Eric received $5,300 interest from a Merrill Lynch money market account.

The Amoth’s gave to the Goodwill items with a FMV of $650. They provided the receipt for the household goods donated on 7/15. The goodwill is the local one in Mockingbird Heights at 123 High Street.

The Amoths own their home. They provided to you a Form 1098 with the mortgage interest paid by them to Rocket Mortgage. The total interest was $14,000. Additionally, the property taxes were impounded by Rocket Mortgagee and were $4,500 for the year.

Please prepare the 1040.