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FOR THIS PROBLEM THE PREVIOUS EXPERT GAVE ME THE WRONG ANSWER OF $53,870. PLEASE HELP ME SOLVE THIS PLEASE CAN YOU HELP ME SOLVE THIS
FOR THIS PROBLEM THE PREVIOUS EXPERT GAVE ME THE WRONG ANSWER OF $53,870. PLEASE HELP ME SOLVE THIS
PLEASE CAN YOU HELP ME SOLVE THIS CORRECTLY. 53,870 WAS WRONG
Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com. Though Ken is retired, he is still very active. Ken reported the following financial information this year. Assume Ken files as a single taxpayer. a. Ken won $1,600 in an illegal game of poker (the game was played in Utah, where gambling is illegal). b. Ken sold 1,400 shares of stock for $32 a share. He inherited the stock two years ago. His tax basis (or investment) in the stock was $31 per share. C. Ken received $29,000 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $243,600. d. Ken received $14,000 in disability benefits for the year. He purchased the disability insurance policy last year. e. Ken decided to go back to school to learn about European history. He received a $900 cash scholarship to attend. He used $500 to pay for his books and tuition, and he applied the rest toward his new car payment. f. Ken's son, Mike, instructed his employer to make half of his final paycheck of the year payable to Ken as a gift from Mike to Ken. Ken received the check on December 30 in the amount of $1,700. g. Ken received a $810 refund of the $4,000 in state income taxes his employer withheld from his pay last year. Ken claimed $12,850 in itemized deductions last year (the standard deduction for a single filer was $12,400). h. Ken received $34,000 of interest from corporate bonds and money market accounts. Determine Ken's gross income. Gross incomeStep by Step Solution
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