Comprehensive Problem 3-1 Ken (birthdate July 1, 1987) and Amy (birthdate July 4, 1989) Booth have brought you the following information regarding their income, expenses, and withholding for the year. They are unsure which of these items must be used to calculate taxable income. Income: Ken's salary (salesman) $28.345 Amy's wages (part-time nurse) 17,490 Insurance reimbursement for repairs from an auto accident 500 Gift from Uncle George 2,000 Interest income from Lodge State Bank 833 Federal income taxes withheld: From Ken's salary 2.600 From Amy's wages 650 Amy owns and operates a computer bookstore named "The Disk Drive". The store is located at 2000 Broadway Street, Menomonie, WI 54751. During 2018, Amy had the following income and expenses: Sales of books $320,985 Expenses Store rental 15,985 Office expense 6.150 Advertising 11,700 City business license 1,020 Payroll 83,550 Payroll taxes 8.392 Utilities 8,050 Other 3,000 Cost of inventory sold 184,855 Amy treats inventory as non-incidental materials and supplies. 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 $20,000 at a casino birthday party for one of his friends