Lisa Kohl's personal information is included in the attached Form 1040. Her earnings for the year were $55,700. Federal income tax withheld was $7800. State income tax withheld was $700. She has $250 of interest income from Hudson Savings Bank. During the year, Lisa paid $4475 in state income tax; $9250 in home mortgage interest; $550 in credit card interest (Visa); $750 in premiums (MET LIFE); $1425 in property taxes on her home; $250 in Blue Cross medical premiums; $780 for eyeglasses; and $730 to the Boy Scouts of America. Lisa purchased Malden Corporation stock for $43,100 on February 5 of this year. She sold the stock for $17,200 on August 31 of this year. On January 28 of this year, Lisa sold raw land for $180,000. The basis of the land is $120,000. The land was purchased 6 years ago. She received $45,000 as a down payment and the buyer's 10-year not for $135,000.The note is payable at the rate of $13,500 per year plus 8% interest. The first of the ten interest and principal payments is due on January 28 of next year. 

Required: Review the following tax forms for Lisa Kohl and make any necessary changes. Also, describe the tax forms that would be used for the stock transaction and for the land transaction.

Answer rating: 100% (QA)

Form 1040 The following changes should be made to Form 1040 a Adjusted Gross Income AGI Start with L... View the full answer