Name: Jane Doe

SSN: $444-44-4444$

Address: $555$ Any Street, Anytown, CA $90000$

Marital Status: Separated $-$ Living apart

Minor Children: $1($lives with ex$-$husband$)$

Elections: Standard deduction $($never itemized$)$

Summary:

Jane Doe $($DOE$)$ was an employee at ABC, Inc. $($benefit details below$).$ After being injured on the job, DOE

received three monthly payments from an disability policy $($benefit details below$).$ At the start of the tax year,

DOE sold her residence for $$600,000($Payer #$1).$ DOE bought the house she sold for $$300,000$ and lived in the

house for $10$ years prior to the sale. During the tax year, DOE received $$25,000$ in workers compensation

payments. By the end of the tax year, DOE had substantial gambling debts that exceed her total assets. Realizing

the her debt of $$30,000$ was uncollectable, the casino $($Payer #$2)$ forgave DOE's gambling debt and issued her a

Form $1099.$ During the tax year, DOE received the following:

$$1,500$ in winnings from slot machines; and

$$1,000$ from a state income tax refund;.

With regard to DOE's job at ABC, Inc., DOE received wages of $$20,000$ for time she worked. In addition to her

salary, DOE received the following employee benefits from ABC, Inc.:

Employer paid health care of $$15,000$;

$$5,000$ in sick pay benefits;

$$5,000$ in vacation benefits; and

Employer paid group term life insurance with $$50,000$ in coverage. Question $1$

When completing Form $8949,$ which entries are correct?

$x$ in Box A; $1($d$)=$$$600,000$;$1(e)=$$$250,000$;$1(h)=$$$50,000$

$x$ in Box C; $1(d)=$$$600,000$;$1(e)=$$$300,000$;$1(h)=$$$300,000$

$x$ in Box F; $1($d$)=$ $$600,000$; $1($e$)=$$$300,000$;$1(f)=H$;$1(g)=-$$$250,000$;$1(h)=$

$$50,000$

$x$ in Box F; $1(d)=$$$600,000$;$1(e)=$$$300,000$;$1(f)=i$;$1(g)=($$$250,000)$;$\{\begin{array}{ccc}\text{:}[x& in\text{B}\text{o}\text{x}F\text{;}1(d)=\text{\$}600,& 000\text{;}1(e)]\\ 1(f)=i\text{;}1(g)=(\text{\$}250,& 000)\text{;}1(l)\end{array}$

selected this answer. Question $2$

When completing Schedule D$,$ which entry is correct?

Line $10(h)=$$$50,000$

Line $3(h)=$$$50,000$

Line $7(h)=$$$50,000$

Line $9(d)=$$$600,000$ Question $3$

When completing Schedule $1,$ which entries are correct?

$1=$$$1,000$;$8(a)=$$$1,500$; and $10=$$$2,500$

$1=$$$1,000$;$8(b)=$$$1,500$; and $10=$$$2,500$

$1=$$$0$;$8(b)=$$$1,500$;$8(c)=$$$30,000$; and $10=$$$31,500$

$1=$$$0$;$8(b)=$$$1,500$;$8(c)=$$$30,000$;$8(z)=-30,000$; and $10=$$$1,500$Question $4$

What is DOE's total income on Form $1040?$

$$70,500$

$$111,500$

$$81,500$

$$80,500$

Question $5$

What is DOE's taxable income?

$$57,450$

$$86,950$

$$68,550$

$$55,450$