Bobby and Susie Chapman were married on December 31, 2019. They live at 755 Emerald Bay Drive, Rome, Georgia 30000. They want to file a joint income tax return based on the following information.

1. Bobby has one child, Samantha Chapman, who is 24 and a full-time student at the University of Georgia. She lives in the dorm except during the summer when she lives at home. Bobby provides more than half of Samanthas support. Samantha has a job as a research assistant where she made $15,500 during 2019 which has put in a savings account.

2. Susie has two children, James and John Smith. James and John are 22 and 25 respectively, live with Susie and Bobby and are models for an international clothing company. They are full time college students and work as models during the summer and school vacations. James made $35,000 last year modeling and John made $4,000. This income was placed in separate college funds for each child. Susie paid more than half of their support.

3. Bobby worked as a college professor at the local college. His salary reflected on his W-2 for the year is $72,000. His W-2 also reflected that he had $$6,000 withheld in federal income tax.

4. Bobby retired from his job as a professor at the local college on July 1, 2019. He receives $3,500 a month in retirement. Bobbys 1099-R reflects that $2,800 of these payments were taxable. The 1099-R also shows that he had $3,200 withheld in federal income tax during 2019.

5. Susie has $392 in interest income from US Treasury bonds. She also had $1,756 in interest from bonds issued by the State of Georgia.

6. Bobby received a Form 1099 INT indicating that he received $625 in interest income from a CD at the Bank of York. He also has corporate IBM bonds which paid $650 in interest during 2019.

7. James and John both have savings accounts at Bank of York. James received a Form 1099-INT indicating he had $225 in interest and Johns Form 1099-INT indicated that he had $345 in interest.

8. Susie works as a violin instructor and music teacher at Rome Academy. Her W-2 indicates that she had a salary of $22,500 during 2019 with $9,000 federal income tax withheld. Susie started working in August. She was unemployed from January until August and received $5,600 in unemployment benefits.

9. During October Susie was injured when she fell going up the stairs to perform. She received $1,875 in workmans compensation benefits. Her health insurance also paid $3,650 in payments to doctors and physical therapists as a result of her injury.

10. Susie, Bobby, and their dependents have health insurance through Bobbys employer, and this health insurance continues after Bobby retires. They pay $125 a month for insurance. The employer pays the remainder of the $800 premium. (The employer pays $275 a month for the insurance.)

11. When Bobby retired, he went on a trip with his friends and visited a casino where he won $3,600 gambling. The casino withheld $720 in federal income tax.

12. Bobbys father gave him a house at the beach when Bobby retired. The house was worth $1,200,000 on the date Bobby received the house, and Bobbys father paid $780,000 for the house in 2001.

13. Susie is also a self-employed violin instructor in addition to working as an employee of Rome Academy. She had net income of $7,800 during 2019 from her lessons. She also plays with the Atlanta Symphony from which she received a 1099 MISC in the amount of $18,000 for playing 6 concerts. She did not have any deductible expenses on the Schedule C.

14. Bobby purchased a small apartment building with four units when he retired so he would have something to do. His net rental income from the apartments is $15,250. He did not have any deductible expenses during the year. He also made estimated income tax payments for the third and fourth quarters of $800 each quarter.

15. Susies mother died during 2019, leaving Susie all of her jewelry. The jewelry is valued on the date of death at $52,600. Susie found all of the receipts where her mother had purchased the jewelry. Susies mother had paid $45,000 for all of the jewelry.

16. Susie owns several stocks. She received $850 in qualified dividends from Pepsi and $1,650 in ordinary dividends from GMC. She has owned both stocks several years.

17. When Bobby retired, Bobbys employer gave a huge party in his honor. They also presented him with a watch valued at $390 and a check in the amount of $2,500 celebrating his loyalty to the college and his working 30 years.

18. Bobby also owns an oil well. He received a 1099-MISC indicating that he had $4,800 in royalties during 2019.

19. Susie sold 500 shares of GMC stock for $400 per share on December 20, 2019. She had purchased the stock on October 24, 2014 for $220 a share.

20. Bobby and Susie have itemized deductions of $22,900 for 2019.

21. Susies employer, Rome Academy, gives free soft drinks and lunch valued at $1,200 while she is at work. Susie cannot leave work during the day to buy her lunch. They also provide Susie with five Rome Academy shirts worth $25 each. She is required to wear the Rome Academy shirts to work.

22. Rome Academy also provides Susie with a free card valued at $250 to attend all of the Rome Academy sporting events.

23. Bobby purchased a commercial real estate lot for $125,000 on April 20, 2019 for a business he wanted to start. He made $22,000 in improvements, leveling the lot and installing curbing and sidewalks. He has decided not to start the business and sold the lot on August 15, 2019 for $165,000. The selling expenses paid by Bobby were $5,200.

24. Bobby also owned a rental house that he purchased for $285,000 on June 7, 1990. The house sold on May 20, 2019 for $225,000.