Complete the Booths' federal income tax return for 2017. Use form 1040,Schedule C,Schedule D, and form 8949, on pages 3-51 to 3-58 to complete this tax return. A statement is required to be attached to a return for a nonbusiness bad debt, but this requirement may be ignored for this problem. Assume no 1099-B is filled in association with the bad debt when filling out form 8949.

REHENSIVE PROBLEMS 1. Ken (birthdate July 1, 1986) and Amy (birthdate July 4, 1988) Booth have brought you the following information regarding their income, expenses, and withholding for the wMyear,They are unsure which of these items must be used to calculate taxable income. Income Ken's salary (salesman) Amy's wages (part-time nurse) Insurance reimbursement for repairs from an $28,345 17,490 o no auto accident Gift from Uncle George Interest income from Lodge State Bank 2,000 833 Federal income taxes withheld: From Ken's salary 2,600 650 From Amy's wages Amy owns and operates a computer bookstore named "The Disk Drive."The store is located at 2000 Broadway Street, Menomonie, WI 54751. The business EIN is 27 1234567 and the principal business code for bookstores is 451211. During 2017, Amy had the following income and expern Sales of books $320,985 Store rental 15,985 6,150 11,700 1,020 83,550 8,392 8,050 3,000 Office expense Advertising City business license Payroll Payroll taxes Utilities Other Inventory January 1 December 31 231,645 166,500 Purchases during the year The previous year was Amy's first year of operating the bookstore. Amy and Ken elected to carry forward a $2,175 net operating loss from the first year of business into 2017, (Note: Net operating losses are reported on the "Other Income" line of Form 1040.) This year, Amy loaned a friend $10,000 so that he could make an investment. Instead of making the investment, the friend lost all the money gambling and left for parts unknown. Amy has no hope of ever collecting on this bad debt Ken, who ordinarily never gambles, won $22,000 at a casino birthday party for one of his friends.This amount should be reported on the "Other Income" line of Form 1040 The Booths provide the sole support for Ken's parents, Rod (Social Security num ber 124-80-9050) and Mary (Social Security number 489-37-6676) Booth, who live in their own home. Ken and Amy live at 2345 Wilson Avenue, Menomonie, WI, 54751, and their Social Security numbers are 343-75-3456 (Ken) and 123-45-7890 (Amy) REHENSIVE PROBLEMS 1. Ken (birthdate July 1, 1986) and Amy (birthdate July 4, 1988) Booth have brought you the following information regarding their income, expenses, and withholding for the wMyear,They are unsure which of these items must be used to calculate taxable income. Income Ken's salary (salesman) Amy's wages (part-time nurse) Insurance reimbursement for repairs from an $28,345 17,490 o no auto accident Gift from Uncle George Interest income from Lodge State Bank 2,000 833 Federal income taxes withheld: From Ken's salary 2,600 650 From Amy's wages Amy owns and operates a computer bookstore named "The Disk Drive."The store is located at 2000 Broadway Street, Menomonie, WI 54751. The business EIN is 27 1234567 and the principal business code for bookstores is 451211. During 2017, Amy had the following income and expern Sales of books $320,985 Store rental 15,985 6,150 11,700 1,020 83,550 8,392 8,050 3,000 Office expense Advertising City business license Payroll Payroll taxes Utilities Other Inventory January 1 December 31 231,645 166,500 Purchases during the year The previous year was Amy's first year of operating the bookstore. Amy and Ken elected to carry forward a $2,175 net operating loss from the first year of business into 2017, (Note: Net operating losses are reported on the "Other Income" line of Form 1040.) This year, Amy loaned a friend $10,000 so that he could make an investment. Instead of making the investment, the friend lost all the money gambling and left for parts unknown. Amy has no hope of ever collecting on this bad debt Ken, who ordinarily never gambles, won $22,000 at a casino birthday party for one of his friends.This amount should be reported on the "Other Income" line of Form 1040 The Booths provide the sole support for Ken's parents, Rod (Social Security num ber 124-80-9050) and Mary (Social Security number 489-37-6676) Booth, who live in their own home. Ken and Amy live at 2345 Wilson Avenue, Menomonie, WI, 54751, and their Social Security numbers are 343-75-3456 (Ken) and 123-45-7890 (Amy)