Devon Bishop, age 35, is singlele. He lives at 1507 Rose Lane, Albuquerque, NM 87131. His Social Security number is 111-11-1111. Devon does not want $3 to go to the Presidential Election Campaign Fund. Deons wife, Ariane, passed away in 2009. Devons son, Tom, who is age 16, resides with Devon. Toms Social Security number is 123-45-6788. Devon owns a sole proprietorship for which he uses the accrual method of accounting. His revenues and expenses for 2013 are as follows: Sales revenue $740,000 Cost of goods sold 405,000 Salary expense 88,000 Rent expense 30,000 Utilities 8,000 Telephone 6,500 Advertising 4,000 Bad debts 5,000 Depreciation ** 21,000 Health insurance* 26,000 Accounting and legal fees 7,000 Supplies 1,000 *$18,000 for employees and $8,000 for Devon.Other income received by Devon includes the following: Dividend income (all are qualified dividends): Swan, Inc. $10,000 Wren, Inc. 2,000 Interest income: First Bank 11,000 Second Bank 2,500 City of Asheville bonds 17,000 During the year, Devon and his sole proprietorship had the following property transactions: a) Sold Blue, Inc. stock for $45,000 on March 12, 2013. He had purchased the stock on September 5, 2010, for $50,000. b) Received an inheritance of $300,000 from his Uncle Henry. Devon used $200,000 to purchase Green, Inc. stock on May 15, 2013, and invested $100,000 in Gold, Inc. stock on May 30, 2013. c) Received Orange, Inc. stock worth $9,500 as a gift from his Aunt Jane on June 17, 2013. Her adjusted basis for the stock was $5,000. No gift taxes were paid on the transfer. Aunt Jane had purchased the stock on April 1, 2007. Devon sold the stock on July 1, 2013, for $22,000. d) On July 15, 2013, Devon sold one-half of the Green, Inc. stock for $40,000. e) Devon was notified on August 1, 2013, that Yellow, Inc. stock he purchased from a colleague on September 1, 2012, for $52,500 had become worthless. While he perceived that the investment was risky, he did not anticipate that the corporation would declare bankruptcy. f) On August 15, 2013, Devon received a parcel of land in Phoenix worth $220,000 in exchange for a parcel of land he owned in Tucson. Because the Tucson parcel was worth $245,000, he also received $25,000 cash. Devons adjusted basis for the Tucson parcel was $210,000. He originally purchased it on September 18, 2010. g) On December 1, 2013, Devon sold the condominium in which he had been living for the past 20 years. The sales price was $480,000, selling expenses were $28,500, and repair expenses related to the sale were $9,400. Devon had purchased the condominium for $180,000. Devons potential itemized deductions, exclusive of the aforementioned information, are as follows: Medical expenses (before the 10% floor) $ 9,500 Property taxes on residence 5,800 State income taxes 4,000 Charitable contributions 10,000 Mortgage interest on residence 9,900 Sales taxes paid 5,000.During the year, Devon makes estimated Federal income tax payments of $40,000. Compute Devons lowest net tax payable or refund due for 2013 assuming that he makes any available elections that will reduce the tax.