2B. Carl Conch andMary Duval are married and file a joint return. They live at 1234 Mallory Sq, Apt. 64, Key West, FL 33040. Carl works for the Key Lime Pie Company and Mary is a homemaker after losing her job in 2009. Mary’s Social Security number is 633-

65-7912 and Carl’s is 835-21-5423. Carl’s earnings and income tax withheld for 2010 are:

Earnings from Key Lime Pie Company $67,925 Federal income tax withheld 9,726 State income tax withheld 0 Carl and Mary have interest income of $283 from a savings account at Coral Reef State Bank.

Carl owns stock in Southwest Airlines. Southwest paid Carl $125 in nonqualified dividends in 2010.
Mary is divorced and she pays her ex-husband (Tom Tortuga) child support. Pursuant to their divorce decree, Mary pays Tom $525 per month in child support. All payments were made on time in 2010.
In June of 2010, Mary’s father gave her a cash gift of $75,000. Mary also received unemployment compensation of $2,600 during 2010. Mary won a $1,000 prize in a women’s club raffle in 2010. No income tax was withheld from the prize.
The Key Lime Pie Company provides Carl with a company car to drive while he is working. The Company spent $6,475 to maintain this vehicle during 2010. Carl never uses the car for personal purposes.
Required: Complete Carl and Mary’s federal tax return for 2010. Use Form 1040 and Schedule M on pages 2-47 through 2-49. Make realistic assumptions about any missing data.