Lisa is 68 years old and retired. John is 61 . Lisa and John are married and choose to file a joint return. Lisa received $5,000 of tax-exempt bond interest (current yield is 3.2% ), $25,000 from an IRA account, and $19,600 from a non-qualified annuity from an insurance company. Lisa's annuity started making payments this year (starting January 1 ). Lisa paid $200,000 for the annuity, and she will receive $800 per month for the rest of her and John's joint life. John is still working and earned $240,000 in self-employment income. Assuming no other taxable transactions for the year, what is Lisa's and John's federal income tax liability? What to Submit: 1) Please prepare Form 1040 with Schedules 1 and 2. It may also be helpful for you to complete form SE and Form 8960 (but it is not necessary as you can do the calculations by hand). 2) Please write a short paragraph addressing the following: a) Assume that Lisa could earn a 5.2% yield on her bonds if she purchased taxable bonds. Does it make sense for her to use municipal bonds? Please justify your answer. b) If Lisa and John sold an appreciated stock that triggered a long-term capital gain, what would be the tax rate that would apply to the long-term capital gain? Due Monday, January 30th at 11:59 pm