Paige Turner is single and has two children from her previous marriage. Ali, her daughter, lives with Paige and provides more than half of her support. Leif lives with his father, Will (Leif lived with Will for the entire year.) Will provides more than half of Leifs support. Paige pays alimony of $400 per month to Will. The payments will continue until Leif reaches age 18 and then they will be reduced to $150. The following information is provided by Paige: Her address is 523 Essex Street, Bangor, ME 04401 Her birthday is May 31, 1972 and her SS # is 007-16-4727 Ali is 11 (SS # 005-67-6666) and Leif is 13 (SS #004-56-5559). Will does not live with Paige and Ali. His SS # is 200-12-2222. Paige is a nuclear engineer with Atom Systems Consultants, Inc. Her annual salary is $95,000. She had federal withholding of $10,230, state withholding of $4,495. All other taxes were withheld at legal amounts. Out of her $95,000 salary she contributed $7,000 to a 401(k) plan and $3,600 was put in to a flexible spending plan for medical expenses. During the year, Paige enrolled in two graduate engineering classes at a local college. Her employer paid for her tuition and fees amounting to $2,300. The firm also paid for a life insurance policy that has a benefit of $200,000 to Paiges children. Paiges company paid for her to parking expenses. This would have cost her $200 a month if she paid it out-of-pocket. She feels this is an important benefit because the garage has a security guard. Paige manages the safety program for her company. In recognition of her superior handling of this program the company awarded her $500. She received the cash award in January 2011 despite the recognition ceremony being held in December of the prior year. On January 15th, Paiges father died. She inherited, the following items: Stock valued at $30,000 which was purchased on March 15, 2000 for $12,000 Personal Residence valued at $90,000 which he purchased 25 years ago for $25,000. Paige has put the house on the market for $100,000 but it has not sold yet. The realtor said the land would be worth $20,000 and the house is worth $70,000. Paige had the following investment income for the year: Dividends: Ordinary Dividend Qualified Dividend General Dynamics $300 $300 Casill Corp $100 $100 Disney $500 $500 Vanguard Windsor Fund $800 $525 Interest: New Jersey Economic Development Bonds $300 IBM Bonds $700 State of Nebraska Bonds $200 Paige also owns 1,000 shares of a Sub Chapter S Corporation. The business has 10,000 shares outstanding and Paige has owned the stock for several years. This year the company had $200,000 in taxable income and paid a distribution of $5 per share. Grubstake, Incs tax id # is 45-4567890. Paige sold the following investments during the year: Date Sold Date Purch. Sales Price Cost Basis Nebraska Bonds 3/14/2011 10/22/05 $2,300 $1,890 Casill Corporation 10/20/11 2/19/10 $8,500 $9,760 Paige found a renter for her fathers house on August 1. The monthly rent, and the lease agreement is for one year. The lease requires the tenant to pay the first and last months rent and a $400 security deposit. The security deposit is to be returned at the end of the lease if the property is in good condition. On August 1, Paige received $1,200 from the tenant per the terms of the lease agreement. In November, the plumbing froze and several pipes burst. The tenant had the repairs made and paid the $300 bill. In December, he reduced his rental payment to $100 to compensate for the plumbing repairs. Paige provides you with the following additional information: Property Taxes $770 Other Maintenance Expenses $285 (not plumbing repairs) Insurance Expense $495 Legal Fee $350 (to draw up first lease) Paige paid $2,050 in real estate taxes on her principal residence. She also paid $7,100 of mortgage interest and $435 of home equity interest in which the proceeds were used to pay off credit card bills. Paige incurred the following medical expenses: Dentist $310 Doctor $390 Prescription Drugs $215 Over-the-Counter $140 Optometrist $125 Emergency Room $440 LASIK eye surgery $2,000 Chiropractor $265 She submitted all the expenses for reimbursement from her flexible spending plan and received $3,600. Paige contributed clothing to the Salvation Army. The original cost of the clothing was $740. She feels the value of the clothing would be $300. In addition she made the following cash contributions: Larkin College $850 United Way $125 Amos House (Homeless Shelter) $200 Local Fire Company $100 Paige also paid $295 for business publications other than those paid for by her employer and $325 for a local CPA to prepare her tax return last year. Required: Prepare the 2011 Federal Income Tax Return. Please make any realistic assumptions if necessary