PART 1. Jim and Ginger are married and wish to file a joint return for 2018. They have one dependent child, Hannah (age 15), who lives with them. Jim and Ginger have the following items of income and expense for 2018: Income: Jim's salary Ginger's salary Interest income on State of Arizona bonds Interest income on US Treasury bonds Qualified cash dividends Regular (nonqualified) cash dividends FMV of shares received from stock dividend Share of Hollywood Partnership loss* Share of Gonzaga Corporation (an electing Scorporation) income** Life insurance proceeds received on the death of Jim's mother Short-term capital gains Short-term capital losses 25% Long-term capital gains 15% Long-term capital gains 15% Long-term capital losses $120,000 125,000 3,000 6,000 8,000 8,500 9,500 (12,000) 30,000 100,000 6,000 (10,000) 18,000 30,000 (5,000) Expenses: Traditional IRA Contributions Home mortgage interest ($300,000 principal) Home equity loan interest ($75,000 principal) Vacation home loan interest ($120,000 principal Car loan interest Home property taxes Vacation home property taxes Car tags (ad valorem part) Arizona income tax withheld Federal income taxes withheld Arizona sales taxes paid Medical insurance premiums (not part of an employer plan) Unreimbursed medical bills Charitable contributions 11,000 18,000 6,000 9,600 3,000 6,000 1.800 950 12,000 48,000 9,500 12,000 10,000 13,500 of 2018 The loss is not the Jim and Gingerbrvested $75,000 as limited part in the Hollywood Parharship of the de g result of real estate rentals. Meitherm or Giger material participate Cigar is a 30% owner and President of Gora She materially particles in the corporation REQUIRED: Determine Jim and Ginger's tax liability, using the tax fomula. You must label your work provide supporting schedules for summary computations, and indicate any carryovers. Present your work PART 2. Jim and Ginger have purchased several bond mutual funds in Hannah's name. During 2018, the bonds earned $5,000 of taxable interest: Hannah also eamed $1,800 from babysitting REQUIRED: Determine Hannah' tax liability, using the tax formula. Label all work. PART 1. Jim and Ginger are married and wish to file a joint return for 2018. They have one dependent child, Hannah (age 15), who lives with them. Jim and Ginger have the following items of income and expense for 2018: Income: Jim's salary Ginger's salary Interest income on State of Arizona bonds Interest income on US Treasury bonds Qualified cash dividends Regular (nonqualified) cash dividends FMV of shares received from stock dividend Share of Hollywood Partnership loss* Share of Gonzaga Corporation (an electing Scorporation) income** Life insurance proceeds received on the death of Jim's mother Short-term capital gains Short-term capital losses 25% Long-term capital gains 15% Long-term capital gains 15% Long-term capital losses $120,000 125,000 3,000 6,000 8,000 8,500 9,500 (12,000) 30,000 100,000 6,000 (10,000) 18,000 30,000 (5,000) Expenses: Traditional IRA Contributions Home mortgage interest ($300,000 principal) Home equity loan interest ($75,000 principal) Vacation home loan interest ($120,000 principal Car loan interest Home property taxes Vacation home property taxes Car tags (ad valorem part) Arizona income tax withheld Federal income taxes withheld Arizona sales taxes paid Medical insurance premiums (not part of an employer plan) Unreimbursed medical bills Charitable contributions 11,000 18,000 6,000 9,600 3,000 6,000 1.800 950 12,000 48,000 9,500 12,000 10,000 13,500 of 2018 The loss is not the Jim and Gingerbrvested $75,000 as limited part in the Hollywood Parharship of the de g result of real estate rentals. Meitherm or Giger material participate Cigar is a 30% owner and President of Gora She materially particles in the corporation REQUIRED: Determine Jim and Ginger's tax liability, using the tax fomula. You must label your work provide supporting schedules for summary computations, and indicate any carryovers. Present your work PART 2. Jim and Ginger have purchased several bond mutual funds in Hannah's name. During 2018, the bonds earned $5,000 of taxable interest: Hannah also eamed $1,800 from babysitting REQUIRED: Determine Hannah' tax liability, using the tax formula. Label all work