2A. Bea Jones (age 32) moved from Texas to Florida in December 2009. She lives at 654 Ocean Way, Gulfport, FL 33707. Bea’s Social Security number is 466-78-7359 and she is single. Her earnings and income tax withholding for 2010 for her job as a manager at a Florida shrimp-processing plant are:

Earnings from the Gulf Shrimp Co. $42,000 Federal income tax withheld 7,800 State income tax withheld 0 Bea’s other income includes interest on a savings account at Beach National Bank of

$2,200 and $600 per month alimony from her ex-husband.

During the year, Bea paid the following amounts (all of which can be substantiated):

Home mortgage interest $ 9,700 Auto loan interest 2,300 Property taxes on personal residence 3,200 State and local sales taxes actually paid during 2010 1,500 Unreimbursed hospital bills 3,200 Doctor bills 2,550 Other medical expenses 720 Income tax preparation fee 600 Job-hunting expenses 925 Union dues 800 In July of this year, someone broke into Bea’s house and stole a diamond ring. The diamond ring had a fair market value of $10,000 and a tax basis to Bea of $7,600. The ring was uninsured. If the casualty or theft loss floor is changed from $100 to $500 by 2010 year-end legislation, please use a basis of $8,000 to retain the integrity of the problem.

Required: Complete Bea’s federal tax return for 2010. Use Form 1040, Schedule A, Schedule B, Form 4684, and Schedule M, from pages 5-53 through 5-58 to complete this tax return. Make realistic assumptions about any missing data.