Jack and Diane are ages 44 and 42 respectively. Jack is employed as an engineer and Diane works part time for a not for profit. They live at 108 Jackson Drive, Boca Raton, FL 33431. Jacks Social Security number is 123-45-6789, Dianes Social security number is 987-65-4321.

They have three kids Jane is age 20 a full time college student and qualifying child, Jill is 9 years old and is a qualifying child and Jack Jr. is 5 years old and is a qualifying child.

a) Jack earned $80,000 in W-2 wages.

b) Diane earned $4,800 in W-2 wages.

c) They received $12,000 in qualifying dividends.

d) They received $100,000 in life insurance proceeds from the death of Jacks father.

e) Interest income of $800 on San Jose Savings and Loan savings account.

f) Jack and Diane rented a beach house to friends for 12 days and received income of $3,600.

g) Jack pays $4,000 per year into a qualified Health Savings Account.

h) Jack pays $2,000 in student loan interest related to his own college degree.

i) They paid $12,500 mortgage interest on their primary home (paid to San Jose Savings and Loan).

j) The couple tracked sales taxes paid during the year of sales taxes of $3,600

k) State income taxes were $3,200

l) Property taxes on the home were $3,200

m) Jack and Diane pay property taxes on three cars

a. Jacks = $325,

b. Dianes =275, and

c. Janes = 175. Assume that Janes car was purchased by, and is registered to, Jack and Diane.

n) Jack and Diane paid the following expenses relating to their second home (the beach house).

a. $4,500 of mortgage interest

b. $1,500 of property taxes

c. $1,000 repairs and maintenance

d. $3,500 utilities

o) Jack and Diane donated $4,400 to their church.

p) In September of 2018, Hurricane Florence destroyed a beach house owned by Jack and Diane. The hurricane was declared a federal disaster area. The following gains and losses were associated with the hurricane.

a. A beach house purchased for $250,000, with a fair market value of $300,000 was completely destroyed. Insurance reimbursement was $275,000.

b. Furniture and personal property purchased for $25,000, with a fair market value of $20,000 was also destroyed. Insurance reimbursement of $5,000.

q) Jack and Diane also had flood damage at their primary residence that wasnt covered by insurance. The loss from flood damage totaled $30,000.

r) Jack and Diane pay summer and after school care for their children as follows:

a. Jill $3,600

b. Jack Jr. $4,200

Complete Jack and Dianes 1040, 1040 schedule A and 1040 schedule 1. Assume that Jack and Diane want to maximize their discount by taking advantage of all available deductions and credits. Note: dont submit any other forms for grading even if you must use them during your calculations.