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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
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.
- Ken won $1,200 in an illegal game of poker (the game was played in Utah, where gambling is illegal).
- Ken sold 1,000 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.
- Ken received $14,500 from some consulting work he performed for a client.
- Ken received $13,000 as a gift from his father.
- Ken decided to go back to school to learn about European history. He received a $500 cash scholarship to attend. He used $300 to pay for his books and tuition, and he applied the rest toward his new car payment.
- Kens son, Mike, earned $1,100 in overtime compensation. Mike instructed his employer to make the paycheck payable to Ken as a gift from Mike to Ken. Ken received the check on December 30 in the amount of $1,100.
- Ken won $50 in a neighborhood March Madness pool. There was no entry fee for the pool.
- Ken received $30,000 of interest from corporate bonds and money market accounts.
Determine Ken's gross income.
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