for the following problem i am stuck in line 13 capital gains or losses. the way i solved is -10000+(2175) =-12175 but my answer doesnt seem right

and 43 taxable income. Please help

Ken (birthdate July 1, 1985) and Amy (birthdate July 4, 1987) 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) 17,890 Insurance reimbursement for repairs from an auto accident 500 Gift from Uncle George 2,000 Interest income from Lodge State Bank 712 Federal income taxes withheld: From Ken's salary 2,200 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 2016, Amy had the following income and expenses:

Sales of books $320,115 Expenses Store rental 16,000 Office expense 6,150 Advertising 11,800 City business license 1,020 Payroll 83,550 Payroll taxes 8,468 Utilities 8,000 Other 3,000 Inventory January 1 250,000 December 31 231,545 Purchases during the year 166,000 The previous year was Amy's first year of operating the bookstore. Amy and Ken elected to carry forward a $2,175 net operating loss from the first year of business into 2016. (Note: Net operating losses are reported on the "Other Income" line of Form 1040.)

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 $22,000 at a casino birthday party for one of his friends. This amount should be reported on the "Other Income" line of Form 1040.

The Booths support Ken's parents, Rod (Social Security number 124-80-9050) and Mary (Social Security number 489-37-6676) Booth, who live in their own home. Ken and Amy live at 2345 Wilson Avenue, Menomonie, WI, 54751, and their Social Security numbers are 343-75-3456 (Ken) and 123-45-7890 (Amy).

Click here to access the tax table to use for this problem.

Required:

Complete the Booth's federal income tax return for 2016. Use Form 1040, Schedule C, Schedule D, and Form 8949. A statement is required to be attached to a return for a nonbusiness bad debt, but this requirement may be ignored for this problem. You may ignore any related self-employment taxes. Assume no 1099-B is filed in association with the bad debt when filling out Form 8949.

If an amount box does not require an entry or the answer is zero, enter "0". Enter all amounts as positive numbers. However, if required, use the minus sign to enter a "loss".

Hint: You may need to complete the other forms before completing the Form 1040.

Form

1040 Department of the TreasuryInternal Revenue Service(99)

U.S. Individual Income Tax Return

2016

OMB No. 1545-0074

IRS Use Only For the year Jan. 1-Dec. 31, 2016, or other tax year beginning , 2016, ending , 20 See separate instructions. Your first name and initial

Ken Last name

Booth Your social security number

343-75-3456 If a joint return, spouse's first name and initial

Amy Last name

Booth Spouse's social security number

123-45-7890 Home address (number and street). If you have a P.O. box, see instructions.

2345 Wilson Avenue Apt. no. Make sure the SSN(s) above and on line 6c are correct. City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions).

Menomonie, WI 54751 Presidential Election Campaign

Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. You Spouse

Foreign country name

Foreign province/state/country

Foreign postal code

Filing Status Married filing jointly (even if only one had income) Exemptions 6a Yes Yourself. If someone can claim you as a dependent, do not check box 6a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . } Boxes checked

on 6a and 6b

No. of children

on 6c who:

lived with you

did not live with you due to divorce or separation (see instructions)

Dependents on 6c not entered above

Add numbers on lines above

_______

_______