Note: This problem is for the $2023$ tax year.

Denise Lopez, age $40,$ is single and has no dependents. She is employed as a legal secretary by Legal Services, Inc. She owns and operates Typing Services located near the campus of Florida Atlantic University at $1986$ Campus Drive, Boca Raton, FL $33434.$ Denise is a material participant in the business, she is a cash basis taxpayer, and her Social Security number is $123-45-6781.$ Denise lives at $2020$ Oakcrest Road, Boca Raton, FL $33431.$ Denise wants to designate $$3$ to the Presidential Election Campaign Fund. She has never owned or used any virtual currency. During $2023,$ Denise had the following income and expense items:

a$.$$$100,000$ salary from Legal Services, Inc.b$.$$$20,000$ gross receipts from her typing services business.c$.$$$700$ interest income from Third National Bank.d$.$$$1,000$ Christmas bonus from Legal Services, Inc.e$.$$$60,000$ life insurance proceeds on the death of her sister.f$.$$$5,000$ check given to her by her wealthy aunt.g$.$$$100$ won in a bingo game.h$.$Expenses connected with the Typing Services:$$

Office rent$$7,000$Supplies$4,400$Utilities and telephone$4,680$Wages to part$-$time typists$5,000$Payroll taxes$500$Equipment rentals$3,000$

i$.$$$9,164$ interest expense on a home mortgage $($paid to Boca Raton Savings and Loan$).$j$.$$$15,000$ fair market value of silverware stolen from her home by a burglar on October $12,2023.$ Denise had paid $$14,000$ for the silverware on July $1,2013.$ She was reimbursed $$10,000$ by her insurance company.k$.$Denise had loaned $$2,100$ to a friend, Joan Jensen, on June $3,2019.$ Joan declared bankruptcy on August $14,2023,$ and was unable to repay the loan. Assume that the loan is a bona fide debt.l$.$Legal Services, Inc., withheld Federal income tax of $$14,000$ and the appropriate amount of FICA tax from her wages.m$.$Alimony of $$10,000$ received from her former husband, Omar Guzman; divorce was finalized on December $2,2013,$ and no changes have been made to the divorce decree since that time.n$.$Interest income of $$800$ on City of Boca Raton bonds.o$.$Denise made estimated Federal tax payments of $$2,000.$p$.$Use the IRS$$s Sales Tax Deduction calculator to determine Denise$$s available sales tax deduction for $2023($apps$.$irs.gov$/$app$/$stdc$/$general$/).$q$.$Property taxes on her residence of $$3,200.$r$.$Charitable contribution of $$2,500$ to her alma mater, Citrus State College.s$.$On November $1,2023,$ Denise was involved in an automobile accident. At the time of the accident, her automobile's FMV was $$45,000.$ After the accident, the automobile's FMV was $$38,000.$ Denise acquired the car on May $2,2022,$ at a cost of $$52,000.$ Denise's car was covered by insurance, but, because the policy had a $$5,000$ deduction clause, Denise decided not to file a claim for the damage.

Required:

Compute Denise Lopez's $2023$ Federal income tax payable $($or refund due$).$ Use Form $1040,$ Schedule $1,$ Schedule A$,$ Schedule C$,$ Schedule D$,$ and Form $8995.$

Make realistic assumptions about any missing data.

If an amount box does not require an entry or the answer is zero, enter $"0".$

Enter all amounts as positive numbers. However, unless instructed otherwise, use the minus sign to indicate a loss.

It may be necessary to complete the tax schedules before completing Form $1040.$

Use the tax rate schedules provided $($do not use the tax tables$).$ When computing the tax liability, do not round your immediate calculations. If required, round your final answers to the nearest dollar.