John Smith (Social Security number 112-11-2111) is 55 years old and is married to Jane Smith (Social Security number 124-54-6789). The Smiths live at 512 Pacific Coast Highway Laguna Beach, CA 92651. They file a joint return and have two dependent children, Ryan, age 16, and Nicole, age 17. Ryan's Social Security number is 123-45-6888, and Nicole's Social Security number is 123-46-6787. In 2019, John and Jane had the following transactions: 1. John received $300,000 included in his W-2 Box 1 from New Wave Corporation, where he is an engineer. Withholding for Federal income tax was $45,850. Assume the proper amount of Social Security and Medicare tax has been withheld including the.9% ACA Medicare tax. 2. John's mother passed away and he received a parcel of Land worth $1,500,000 and Life Insurance Proceeds of $1,000,000. 3. John and Jane received $14,200 interest on Tustin school district bonds. 4. John received $10,000 of interest on Treasury bills. 5. John received $9,500 interest from a CD at Bank of America. 6. John received $15,000 of a dividend on Ford Motor Company stock that he has owned for 1 year. 7. John received 150 shares of Apple Corporation common stock as a stock dividend. The shares had a fair market value of $12,500 at the time he received them, and she did not have the option of receiving cash. 8. John and Jane received a $3,500 refund on their 2018 California income taxes in 2019. They itemized deductions in 2018 and claimed the maximum $10,000 state tax deduction of which $5,000 was property tax. Their California tax liability in 2018 was $25,000 of which $5,000 was deducted in 2018. 9. John paid $12,800 alimony to his former wife, Blanche Smith (Social Security number 124-48- 8786). The divorce was finalized in 2002. 10. John and Jane kept the receipts for their 2019 sales taxes paid of $1,100. 11. John and Jane's itemized deductions for 2019 were as follows: State income tax paid and withheld totaled $8,100. Real estate taxes on their principal residence were $5,500. Mortgage interest on their principal residence was $20,500. Cash contributions to the church totaled $8,800. Medical Expenses related to Doctors, etc. of $10,000 (Note the maximum amount was paid out of their Health Savings Account see below). Job related unreimbursed expenses of $5,500 related to travel. Tax Preparation Fees of $2,000. Contributions to the Mayor of Laguna Beach's campaign of$1,800. 12. John and Jane set up a new Health Savings Account for the maximum amount allowed in 2019. They have a high deductible medical plan at New Wave Corporation. Compute the Smith's net federal tax payable (or refund due) 2019. Use the 1040 and applicable other forms that you need to file a return with the IRS for 2019. Do not prepare the California return. John Smith (Social Security number 112-11-2111) is 55 years old and is married to Jane Smith (Social Security number 124-54-6789). The Smiths live at 512 Pacific Coast Highway Laguna Beach, CA 92651. They file a joint return and have two dependent children, Ryan, age 16, and Nicole, age 17. Ryan's Social Security number is 123-45-6888, and Nicole's Social Security number is 123-46-6787. In 2019, John and Jane had the following transactions: 1. John received $300,000 included in his W-2 Box 1 from New Wave Corporation, where he is an engineer. Withholding for Federal income tax was $45,850. Assume the proper amount of Social Security and Medicare tax has been withheld including the.9% ACA Medicare tax. 2. John's mother passed away and he received a parcel of Land worth $1,500,000 and Life Insurance Proceeds of $1,000,000. 3. John and Jane received $14,200 interest on Tustin school district bonds. 4. John received $10,000 of interest on Treasury bills. 5. John received $9,500 interest from a CD at Bank of America. 6. John received $15,000 of a dividend on Ford Motor Company stock that he has owned for 1 year. 7. John received 150 shares of Apple Corporation common stock as a stock dividend. The shares had a fair market value of $12,500 at the time he received them, and she did not have the option of receiving cash. 8. John and Jane received a $3,500 refund on their 2018 California income taxes in 2019. They itemized deductions in 2018 and claimed the maximum $10,000 state tax deduction of which $5,000 was property tax. Their California tax liability in 2018 was $25,000 of which $5,000 was deducted in 2018. 9. John paid $12,800 alimony to his former wife, Blanche Smith (Social Security number 124-48- 8786). The divorce was finalized in 2002. 10. John and Jane kept the receipts for their 2019 sales taxes paid of $1,100. 11. John and Jane's itemized deductions for 2019 were as follows: State income tax paid and withheld totaled $8,100. Real estate taxes on their principal residence were $5,500. Mortgage interest on their principal residence was $20,500. Cash contributions to the church totaled $8,800. Medical Expenses related to Doctors, etc. of $10,000 (Note the maximum amount was paid out of their Health Savings Account see below). Job related unreimbursed expenses of $5,500 related to travel. Tax Preparation Fees of $2,000. Contributions to the Mayor of Laguna Beach's campaign of$1,800. 12. John and Jane set up a new Health Savings Account for the maximum amount allowed in 2019. They have a high deductible medical plan at New Wave Corporation. Compute the Smith's net federal tax payable (or refund due) 2019. Use the 1040 and applicable other forms that you need to file a return with the IRS for 2019. Do not prepare the California return