Paige Turner is single and has two children from her previous marriage. Ali lives with Paige, and Paige provides more than half of her support. Leif lives with his father, Will (Leif lived with Will for all of 2017). Will provides more than half of Leifs support. Paige provides you with the following additional information:

She uses the cash method of accounting and a calendar year for reporting.

She wishes to contribute to the presidential election campaign.

Paige lives at 523 Essex Street, Bangor, Maine 04401.

Paiges birthday is May 31, 1979.

Alis birthday is October 5, 2008.

Leifs birthday is December 1, 2006.

Paiges Social Security number is 007-XX-4727.

Alis Social Security number is 005-XX-7232.

Leifs Social Security number is 004-XX-3419.

Wills Social Security number is 006-XX-6333.

She does not have any foreign bank accounts or trusts.

2. Paige is employed as a nuclear engineer with Atom Systems Consultants, Inc. (ASCI). ASCIs federal employer identification number is 79-1234466. Paiges pay stubs indicate that she had $7,230 withheld in federal taxes, $4,987 in state taxes, $4,495 in Social Security taxes, and $1,051 in Medicare taxes. ASCI has an extensive fringe benefits program for its employees.

3. Paige earned salary of $70,000 (before subtracting her 401(k) and flexible spending plan contributions). She contributed $7,000 to her 401(k) account, and she contributed $2,500 to her flexible spending account.

4. ASCI paid $397 of whole life insurance premiums to cover Paiges personal whole life insurance policy. ASCI also paid health club dues of $900 to a nearby health club on Paiges behalf.

5. Taking advantage of ASCIs educational assistance program, during the fall Paige enrolled in two graduate engineering classes at a local college. ASCI paid her tuition, fees, and other course-related costs of $2,300.

6. Paige received free parking in the companys security garage that would normally cost $200 per month.

7. Paige manages the safety program for ASCI. In recognition of her superior handling of three potential crises during the year, Paige was awarded the Employee Safety Award on December 15. The cash award was $500.

8. On January 15, 2017, Paiges father died. From her fathers estate, she received stock valued at $30,000 (his basis was $12,000) and her fathers house valued at $90,000 (his basis in the house was $55,000).

9. Paige owns several other investments and in February 2018 received a statement from her brokerage firm reporting the interest and dividends earned on the investments for 2017. (See Exhibit A.)

EXHIBIT A Forms 1099 and 1098

This is important tax information and is being furnished to the Internal Revenue Service.

1099-Div Dividends & Distributions

Entity Description Amount

General Dynamics Gross qualified dividends $300

1099-Int Interest

Entity Description Amount

New Jersey Economic Development bonds Gross interest $300

IBM bonds Gross interest 700

State of Nebraska bonds Gross interest 700

1098-Mortgage Interest Statement

Entity Description Amount

Sunbelt Credit Union Mortgage interest $7,100

Northeast Bank Home-equity loan interest 435

Grubstake Mining & Development: preliminary report (preliminary K-1) to Paige for the 2017 tax year:

Distribution to shareholder $1,000

Ordinary income (1% of $200,000) 2,000

10. In addition to the investments discussed above, Paige owns 1,000 shares of Grubstake Mining & Development common stock. Grubstake is organized as an S corporation and has 100,000 shares outstanding (S corp. ID number 45-4567890). Grubstake reported taxable income of $200,000 and paid a distribution of $1.00 per share during the current year. Paige tells you that Grubstake typically does not send out its K-1 reports until late April. However, its preliminary report has been consistent with the K-1 for many years. (See Exhibit A.) Paige does not materially participate in Grubstakes activities.

11. Paige slipped on a wet spot in front of a computer store last July. She broke her ankle and was unable to work for two weeks. She incurred $1,300 in medical costs, all of which were paid by the owner of the store. The store also gave her $1,000 for pain and suffering resulting from the injury. ASCI continued to pay her salary during the two weeks she missed because of the accident. ASCIs plan also paid her $1,200 in disability pay for the time she was unable to work. Under this plan ASCI pays the premiums for the disability insurance as a taxable fringe benefit.