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65 Kara and Brandon Arnold are married and file a joint return. Their Social Security num 1:8-65 bers are 000-00-1111 and 000-00-2222, respectively. Kara and

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65 Kara and Brandon Arnold are married and file a joint return. Their Social Security num 1:8-65 bers are 000-00-1111 and 000-00-2222, respectively. Kara and Brandon have one son., Henry, age 3. His Social Security number is 000-00-3333. They live at 356 Welcome Lane, Woodbury, WA 84653. They report their income on the cash method. During 2017, they report the following items: Salar Interest income from money market accounts Dividend income from Davis Corp. stock Cash contributions to church Rental of a condominium in Lutsen: $103,000 600 700 6,000 Rental income (30 days) Interest expense Property taxes Maintenance Depreciation (entire year) Insurance 12,000 7,000 3,200 1,700 7,500 2,000 16 ays of personal us The address of the Condo is 1127 Skyline Drive, Lutsen, WA 84666. During the year the a. In 2015, Brandon had loaned a friend $3,000 to help pay medical bills. During 2017, b. On June 20, 2017, Brandon sells Kim Corporation stock for $16,000. He purchased c. On September 19,2017, Kara discovers that the penny stock of Roberts, Inc. she purchased d. Instead of accepting $60 the utility store offers for their old dishwasher, they donate following events also occur he discovers that his "friend" has skipped town. the stock on December 12, 2011 for $22,000 on January 2 of the prior year is completely worthless. She paid $5,000 for the stock. it to Goodwill on November 21, 2017. They purchased the dishwasher for $750 on March 30, 2007. The new dishwasher cost $900. e. Kara and Brandon purchased a new residence for $250,000. As part of the closing costs they pay two points, or $3,800, on the mortgage, which is interest rather than loan process ing fees. This payment enables them to obtain a more favorable interest rate for the term of the loan. They also paid $8,400 in interest on their mortgage on their personal residence f. They pay $4,100 in property taxes on their residence and $7,500 in state income taxes. g. On July 20, 2017, Kara and Brandon donate 1,000 shares of Anton, Inc. stock to the local community college. The value of the stock on that date is $10,200. Anton, Inc. is a listed stock. They had purchased the stock on November 10, 2010 for $1,000 h. $7,000 in federal income tax was withheld during the year Complete Kara and Brandon's Form 1040, Schedules A, B, D, and E, Form 8283 and Form 8949. For purposes of this problem, disregard the alternative minimum tax and any credits

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