. . Mr. and Mrs. Gray are married and file a joint tax return following information is available concerning the preparation of their 2019 tax return: The 1. 12 years. 2. 3. He began receiving payments during 2020 from a purchased annuity that has matured. Under the annuity contract he is to receive $30,000 per year for the rest of his life. His life expectancy is He purchased the annuity for $270,000. They received 25 shares of preferred stock of the Blue Company as a dividend on their 750 shares of common stock of the Blue Company on March 13, 2020. On March 13, 2020 the preferred stock of the Blue Company had a market value of $93.60 per share, and the common stock of the Blue Company had a market value of 35.88 per share. They originally paid $24,000 for the 750 shares of the Blue Company when they were purchased on January 1, 2016. She owns a whole-life insurance policy that has matured. The insurance company declared a $95 dividend on her policy. She elected to receive the dividend in cash. She has made total premium payments of $9,800 over the life of the policy. She was divorced from her ex-husband during 2019. Under the divorce decree she is to pay her ex-husband $4,000 per month in alimony and $2,000 per month in child support. They redeemed Series EE savings bonds with a cost of $9,000 for $21,500 They paid the following costs for their dependent daughter to attend college: tuition of $17,200 and room and board of $3,225. Their adjusted gross income is $115,000. 5. Required: 1. Determine the tax treatment of the above-mentioned items on Mr. and Mrs. Gray's 2020 tax return. 2. Determine the basis of the Blue Company common stock and the Blue Company preferred stock and the holding period on December 31, 2020 of the 15 shares of preferred stock of the Blue Company received as a stock dividend. 3. Determine the basis of the whole-life insurance policy. Assuming that Mr. Gray died during 2029 after receiving his 10th annuity payment, determine the tax treatment of the annuity payment on Mr. and Mrs. Gray's 2029 tax return. 0 . . Mr. and Mrs. Gray are married and file a joint tax return following information is available concerning the preparation of their 2019 tax return: The 1. 12 years. 2. 3. He began receiving payments during 2020 from a purchased annuity that has matured. Under the annuity contract he is to receive $30,000 per year for the rest of his life. His life expectancy is He purchased the annuity for $270,000. They received 25 shares of preferred stock of the Blue Company as a dividend on their 750 shares of common stock of the Blue Company on March 13, 2020. On March 13, 2020 the preferred stock of the Blue Company had a market value of $93.60 per share, and the common stock of the Blue Company had a market value of 35.88 per share. They originally paid $24,000 for the 750 shares of the Blue Company when they were purchased on January 1, 2016. She owns a whole-life insurance policy that has matured. The insurance company declared a $95 dividend on her policy. She elected to receive the dividend in cash. She has made total premium payments of $9,800 over the life of the policy. She was divorced from her ex-husband during 2019. Under the divorce decree she is to pay her ex-husband $4,000 per month in alimony and $2,000 per month in child support. They redeemed Series EE savings bonds with a cost of $9,000 for $21,500 They paid the following costs for their dependent daughter to attend college: tuition of $17,200 and room and board of $3,225. Their adjusted gross income is $115,000. 5. Required: 1. Determine the tax treatment of the above-mentioned items on Mr. and Mrs. Gray's 2020 tax return. 2. Determine the basis of the Blue Company common stock and the Blue Company preferred stock and the holding period on December 31, 2020 of the 15 shares of preferred stock of the Blue Company received as a stock dividend. 3. Determine the basis of the whole-life insurance policy. Assuming that Mr. Gray died during 2029 after receiving his 10th annuity payment, determine the tax treatment of the annuity payment on Mr. and Mrs. Gray's 2029 tax return. 0