Note: The highlighted fields are the fields to use to report Ken's items of income from Part I. In Part I, you should have calculated Gross Income of $46,950. That's also the amount you should show on Line 6 (in the far-right column) of the Form 1040. On Schedule 1, Line 21, you should show Other Income of $2,250. Then follow the arrow to Form 1040, Line 6 in the middle column, and enter the $2,250 there.

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.

1. Ken won $1,200 in an illegal game of poker (the game was played in Utah, where gambling is illegal).
2. 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.
3. Ken received $25,000 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $210,000.
4. Ken received $13,000 in disability benefits for the year. He purchased the disability insurance policy last year.
5. 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.
6. Kens son, Mike, instructed his employer to make half of his final paycheck of the year payable to Ken as a gift from Mike to Ken. Ken received the check on December 30 in the amount of $1,100.
7. Ken received a $610 refund of the $3,600 in state income taxes his employer withheld from his pay last year. Ken claimed $12,050 in itemized deductions last year (the standard deduction for a single filer was $12,000).
8. Ken received $30,000 of interest from corporate bonds and money market accounts.

- Do not wear A l ETMANews of the year. TU U U.S. Individual Income Tax Return GUT OMB No 15450074 Fling status S ingh Murid lingirly Married fingertily Head of household Owly widow Your strame and Your s e curity number you a Youwborn before my 2, 1954 Your standard deduction um pour Someone can name and in nd Lastne You are bind Spouse's social w rity number Sun d ded someone com your spouses a perce p e was born before January 2, 1954 Speed Spouse cons ume you were als Homeweanumber and start you have a P.O. Sestructions Al year heath care coverage com ) Present Election Campus Chytown or post office, Mate, and ZIP code. If you how a foreign adires, attach Schedule more than four pendiente sit and here ofert Od Dependents reindruction worker No o ne buty Sion Here de Dios of b ional wich No' antire il both Date CE Pred's signe Paid Preparer Use Only For Dior, Pryland P ark Reduction Act Nut r ition Form 1040 Page 2 mo ach Form 2 2 T Se Waomb imes t ifed dividenda b Taurat ydonds b ber T out from ter 9 ore Se Satybose To come down touch a d groome you have no ima income tract Schedule 1. r 38: tromira banded on the Obuwcome control 10 Table incon traction and from the Yzero Text any 1 m Add S ud 2nd bl But in 12 homines. It Oh which 15 Total 13 and 14 Fado wa 2 Adamom ficha and and t 10 Wi on Rocumber you you | hout you chache | | | uuu - 1 | | LY HT 11 your to Auto Show SCHEDULE from 1040 Additional Income and Adjustments to Income OM MA515-07 2018 Alto R 40 Print 21 how to 11 Amount you want applied to your 2018 ostated Amount You Owe Amount you w Subtractive from 15. Eshtaxponaty rusion Bo to www.powForm 100 forintot and the stormatan Farm 1040 TS OMB No. 7545-0074 SCHEDULE 1 Form 1040 Additional Income and Adjustments to Income Attach to Form 1040 Go to www.in.govForm for instructions and the test Information 2018 Sec 01 Nam shown on om 1040 Your social with Additional Income 10 13 Reserved 10 Taxable refunds, credits, or offset of state and local income taxes . . . 11 Alimony received 12 Business income or o Anach Schedule Cor C-EZ 13 Capital gain oro). Attach Schedule Dif required. If not required, check here 14 Other gains or do Attach Form 4797.. 15 Reserved 160 Reserved . . . . . . . . . . . . . + 17 Rental real estate, royalties, partnerships, corporation, trust, et Attach Schedule 18 Farm Income or do Attach Schedule - - - - - - - 19 Unemployment com - - 200 Reserved . . . 21 Other income List type and amount Combine the amounts in the target you don't have any au t o income here and include on Form 1000.ne . Otherwise, go toine 23 17 Taxable scholarship Form 1040, Lme / funds are reported on Waghes..... etc.) - Do not wear A l ETMANews of the year. TU U U.S. Individual Income Tax Return GUT OMB No 15450074 Fling status S ingh Murid lingirly Married fingertily Head of household Owly widow Your strame and Your s e curity number you a Youwborn before my 2, 1954 Your standard deduction um pour Someone can name and in nd Lastne You are bind Spouse's social w rity number Sun d ded someone com your spouses a perce p e was born before January 2, 1954 Speed Spouse cons ume you were als Homeweanumber and start you have a P.O. Sestructions Al year heath care coverage com ) Present Election Campus Chytown or post office, Mate, and ZIP code. If you how a foreign adires, attach Schedule more than four pendiente sit and here ofert Od Dependents reindruction worker No o ne buty Sion Here de Dios of b ional wich No' antire il both Date CE Pred's signe Paid Preparer Use Only For Dior, Pryland P ark Reduction Act Nut r ition Form 1040 Page 2 mo ach Form 2 2 T Se Waomb imes t ifed dividenda b Taurat ydonds b ber T out from ter 9 ore Se Satybose To come down touch a d groome you have no ima income tract Schedule 1. r 38: tromira banded on the Obuwcome control 10 Table incon traction and from the Yzero Text any 1 m Add S ud 2nd bl But in 12 homines. It Oh which 15 Total 13 and 14 Fado wa 2 Adamom ficha and and t 10 Wi on Rocumber you you | hout you chache | | | uuu - 1 | | LY HT 11 your to Auto Show SCHEDULE from 1040 Additional Income and Adjustments to Income OM MA515-07 2018 Alto R 40 Print 21 how to 11 Amount you want applied to your 2018 ostated Amount You Owe Amount you w Subtractive from 15. Eshtaxponaty rusion Bo to www.powForm 100 forintot and the stormatan Farm 1040 TS OMB No. 7545-0074 SCHEDULE 1 Form 1040 Additional Income and Adjustments to Income Attach to Form 1040 Go to www.in.govForm for instructions and the test Information 2018 Sec 01 Nam shown on om 1040 Your social with Additional Income 10 13 Reserved 10 Taxable refunds, credits, or offset of state and local income taxes . . . 11 Alimony received 12 Business income or o Anach Schedule Cor C-EZ 13 Capital gain oro). Attach Schedule Dif required. If not required, check here 14 Other gains or do Attach Form 4797.. 15 Reserved 160 Reserved . . . . . . . . . . . . . + 17 Rental real estate, royalties, partnerships, corporation, trust, et Attach Schedule 18 Farm Income or do Attach Schedule - - - - - - - 19 Unemployment com - - 200 Reserved . . . 21 Other income List type and amount Combine the amounts in the target you don't have any au t o income here and include on Form 1000.ne . Otherwise, go toine 23 17 Taxable scholarship Form 1040, Lme / funds are reported on Waghes..... etc.)