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Please help with the following, please fill out the tax sheet 1-5b & 10-21 ! Required information [The following information applies to the questions displayed

Please help with the following, please fill out the tax sheet 1-5b & 10-21image text in transcribedimage text in transcribedimage text in transcribed

! Required information [The following information applies to the questions displayed below.] Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com. Though Ken is retired, he is still very active. Ken reported the following financial information this year. Assume Ken files as a single taxpayer. Determine Ken's gross income and complete page 2 of Form 1040 (through line 6) and Schedule 1 for Ken. a. Ken won $1,200 in an illegal game of poker (the game was played in Utah, where gambling is illegal). b. Ken sold 1,000 shares of stock for $32 a share. He inherited the stock two years ago. His tax basis (or investment) in t he stock was $31 per share. c. Ken received $25,000 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually fo r 20 years, for $210,000. d. Ken received $13,000 in disability benefits for the year. He purchased the disability insurance policy last year. e. Ken decided to go back to school to learn about European history. He received a $500 cash scholarship to attend. He used $300 to pay for his books and tuition, and he applied the rest toward his new car payment. f. Ken's son, Mike, instructed his employer to make half of his final paycheck of the year payable to Ken as a gift from Mi ke to Ken. Ken received the check on December 30 in the amount of $1,100. g. Ken received a $610 refund of the $3,600 in state income taxes his employer withheld from his pay last year. Ken clai med $6,400 in itemized deductions last year (the standard deduction for a single filer was $6,350). h. Ken received $30,000 of interest from corporate bonds and money market accounts. Complete page 2 of Form 1040, Line 1-6 and Form 1040, Schedule 1, Lines 1-22 for Ken. (Input all the values as positive numbers. Enter any non-financial information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any given information or Problem Statement. Use 2018 tax laws.) 1040 for a single taxpaver.

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Lets break down Kens income sources and determine which ones are taxable for the purposes of filling out his tax forms a Gambling Income 1200 Since all gambling winnings are taxable this amount will b... blur-text-image

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