2B. Kent Pham, CPA, is a 45-year-old single taxpayer living at 169 Trendie Street, La Jolla, CA 92037. His Social Security number is 865-68-9635. In 2010, Kent’s W-2 as the controller of a local corporation showed the following:

Earnings from the Gentry Hotel $130,000 Federal income tax withheld 22,000 State income tax withheld 12,090 Kent’s other income includes interest from GMAC bonds of $3,250 and interest on a savings account at The Cove Bank of $4,145. Also, Kent received taxexempt interest of $37,960 on private activity bonds that is subject to alternative minimum tax.

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

Home mortgage interest $42,210 Home equity debt interest on loan used to purchase a Lexus 6,800 Credit card interest 2,280 California annual auto registration tax (deductible portion) 770 Auto insurance 1,170 State income taxes paid in 2010 (for 2009) 16,302 Property taxes on personal residence 8,060 Blue Cross premiums 2,340 Other medical expenses 1,025 CPA fees paid to handle 2007 IRS audit 9,100 Charitable contributions:

Tree-huggers Historical Society (a qualified charity) 1,040 Campanile Educational (a qualified charity) 12,000 Tecate´ Orphanage (a Mexican organization) 500 Required: Complete Kent’s federal tax return for 2010. Use Form 1040, Schedule A, Schedule B, Form 6251, and any other appropriate schedule(s) you need on pages 6-53 through 6-58. Make realistic assumptions about any missing data.