Michael S. Roberts (Social Security number 111-11-1111) is 39 years old and is married to Sherry R. Roberts (Social Security number 123-45-6789). The Roberts live at 512 Ferry Road, North News, NY 11771. They file a joint return and have two dependent children, Karen, age 17, and Adam, age 18. Karens Social Security number is 123-45-6788, and Adams Social Security number is 123-45-6787. In 2018, Michael and Sherry had the following transactions: 1. Michael received $120,000 in salary from Red Eye Corporation, where he is a construction engineer. Withholding for Federal income tax was $10,750. The amounts withheld for FICA taxes were as follows: $7,049 ($113,700 6.2%) for Social Security and $1,740 ($120,000 1.45%) for Medicare. Michael worked in Mexico from January 1, 2017, until February 15, 2018. His $120,000 salary for 2018 includes $18,000 he earned for January and one-half of February 2018 while working in Mexico. 2. Michael and Sherry received $400 interest on Montgomery County (Virginia) school bonds. 3. Michael received $2,300 interest from a Bahamian bank account. 4. Sherry received 50 shares of Applegate Corporation common stock as a stock dividend. The shares had a fair market value of $2,500 at the time Sherry received them, and she did not have the option of receiving cash. 5. Michael and Sherry received a $1,200 refund on their 2017 New York income taxes. Their itemized deductions in 2017 totaled $34,000. 6. Michael paid $6,600 alimony to his former wife, Delores Smith (Social Security number 123-45-6786). The divorce was finalized in 2016. 7. Michael and Sherry kept the receipts for their sales taxes paid of $1,100. (CONTINUED ON PAGE TWO) 8. Michael and Sherrys itemized deductions were as follows: State income tax paid and withheld totaled $5,100. Real estate taxes on their principal residence were $3,700. Mortgage interest on their principal residence was $2,500. Cash contributions to the church totaled $2,800. Part 1Tax Computation Compute the Robertss net tax payable (or refund due) for 2018. YOU MUST PREPARE AND SUBMIT: FORM 1040, SCHEDULES 1 & B, AND FORM 2555.