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 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. Denise received the appropriate coronavirus recovery rebates (economic impact payments); related questions in should be ignored. During 2021, Denise had the following income and expense items:

a. $100,000 salary from Legal Services, Inc.

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

c. $700 interest income from Third National Bank.

d. $1,000 Christmas bonus from Legal Services, Inc.

e. $60,000 life insurance proceeds on the death of her sister.

f. $5,000 check given to her by her wealthy aunt.

g. $100 won in a bingo game.

h. 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

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

j. $15,000 fair market value of silverware stolen from her home by a burglar on October 12, 2021. Denise had paid $14,000 for the silverware on July 1, 2011. She was reimbursed $10,000 by her insurance company.

k. Denise had loaned $2,100 to a friend, Joan Jensen, on June 3, 2017.

Joan declared bankruptcy on August 14, 2021, and was unable to repay the loan. Assume that the loan is a bona fide debt. 1. Legal Services, Inc., withheld Federal income tax of $15,000 and the appropriate amount of FICA tax from her wages. m. 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. n. Interest income of $800 on City of Boca Raton bonds. o. Denise made estimated Federal tax payments of $2,000. p. Sales taxes from the sales tax table of $953. q. Property taxes on her residence of $3,200. r. Charitable contribution of $2,500 to her alma mater, Citrus State College. s. On November 1, 2021, 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, 2020, 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

1040 Schedule A Schedule C Form 8949 Schedule D Schedule 1