Denise Lopez, age $40,$is single and has no dependents. She is employed as a legal secretary by Legal Services, Inc. She owns and operates Typing Services located near the campus of Florida Atlantic University at $1986$Campus Drive, Boca Raton, FL $33434.$Denise is a material participant in the business, she is a cash basis taxpayer, and her Social Security number is $123-45-6781.$Denise lives at $2020$Oakcrest Road, Boca Raton, FL $33431.$Denise wants to designate $$3$to the Presidential Election Campaign Fund. She has never owned or used any virtual currency. During $2022,$Denise had the following income and expense

$$ $$101,000$salary from Legal Services, Inc.

$$ $$20,000$gross receipts from her typing services business.

$$ $$700$interest income from Third National Bank

$$ Expenses connected with Typing Services:

$$ Office rent $$7,000$

$$ Supplies $4,400$

$$ Utilities and telephone $4,680$

$$ Wages to part$-$time typists $5,000$

$$ Payroll taxes $500$

$$ Equipment rentals $3,000$

$$ $$9,500$interest expense on a home mortgage $($paid to Boca Raton Savings and Loan$).$

$$ $$15,000$fair market value of silverware stolen from her home by a burglar on October $12,2022.$Denise had paid $$14,000$for the silverware on July $1,2012.$She was reimbursed $$10,000$by her insurance company.

$$ Denise had loaned $$2,100$to a friend, Joan Jensen, on June $3,2018.$Joan declared bankruptcy on August $14,2022,$and was unable to repay the loan. Assume that the loan is a bona fide debt.

$$ Legal Services, Inc., withheld Federal income tax of $$14,000$and the appropriate amount of FICA tax from her wages.

$$ Alimony of $$10,000$received from her former husband, Omar Guzman; divorce was finalized on December $2,2013,$and no changes have been made to the divorce decree since that time.

$$ Denise made estimated Federal tax payments of $$2,000.$

$$ Sales taxes from the sales tax table of $$953.$

$$ Property taxes on her residence of $$3,200.$

$$ Charitable contribution of $$2,500$to her alma mater, Citrus State College.

$$ On November $1,2022,$Denise was involved in an automobile accident. At the time of the accident, her automobile$$s FMV was $$45,000.$After the accident, the automobile$$s FMV was $$38,000.$Denise acquired the car on May $2,2021,$at a cost of $$52,000.$Denise$$s car was covered by insurance, but, because the policy had a $$5,000$deduction clause, Denise decided not to file a claim for the damage.

Part $1$Tax Computation

Compute Denise Lopez$$s $2022$Federal income tax payable $($or refund due$),$and complete her $2022$Federal tax return using appropriate forms and schedules. Suggested software: ProConnect Tax.