Choosing and preparing an individual tax form. Liam McKenzie is single, graduated from college in 2018 and began work as a systems analyst in July of that year. He is preparing to file his income tax return for 2018 and has collected the financial information shown below for that calendar year A blank Form 1040 and Schedule 1 may be obtained at www.IRS.gov.

a. Prepare Liam’s 2018 tax return, using a $12,000 standard deduction and the tax rates given in Exhibit 3.3.

b. Prepare Liam’s 2018 tax return using the data in part a along with the following information:
IRA contribution $5,000 Cash dividends received 150? LO1

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Scholarship used to pay tuition $5,750 Scholarship used to pay room and board 1,850 Salary 55,000 Interest income 185 Potential itemized deductions 3,000 Income taxes withheld 2,600