Question
Comprehensive Problem 8-1 America Los Rios (age 36) is a single taxpayer, living at 4700 Oak Drive, Sacramento, CA 95841. Her Social Security number is
Comprehensive Problem 8-1 America Los Rios (age 36) is a single taxpayer, living at 4700 Oak Drive, Sacramento, CA 95841. Her Social Security number is 976-23-5132. America's earnings and income tax withholding as the manager of a local supermarket store for 2017 are: Earnings $69,300 Federal income tax withheld 14,800 State income tax withheld 2,350 America's other income includes qualifying dividends on American River Corporation stock of $4,500 and interest on a long-term certificate of deposit at Bank of Sacramento of $5,100. During the year, America paid the following amounts (all of which can be substantiated): Home mortgage interest $10,700 Credit card interest 550 Auto loan interest 1,700 Life insurance (universal policy) 750 Property taxes on personal residence 1,150 Co-pays for doctor visits during the year 650 Other medical expenses 790 Income tax preparation fee 250 Charitable contributions (in cash) 550 In her spare time, America trades stocks and bonds. During the year, she sold several stocks and received a Form 1099-B, which showed the following: Stock Acquired Sold Price Basis Red Co. 02/01/07 10/05/17 $5,300 $2,500 Green Co. 06/11/17 08/03/17 3,800 5,000 Blue Co. 12/12/16 09/22/17 6,300 5,000 White Co. 05/12/06 10/15/17 7,000 4,000 Black Co. 09/15/10 11/01/17 5,500 6,800 Required: Complete America's Form 1040 and Schedules A, B and D, Form 8949, and Qualified Dividends and Capital Gain Tax Worksheet. Note: She is not subject to Alternative Minimum Tax. Make realistic assumptions about any missing data. Enter all amounts as positive numbers except for a "loss". If required, enter a "loss" as a negative number on the tax form. If an amount box does not require an entry or the answer is zero, enter "0". If required round any dollar amount to the nearest dollar.
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