Please help with the following

Required information [The following information applies to the questions displayed below.] 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. Determine Ken's gross income and complete page 2 of Form 1040 (through line 6) and Schedule 1 for Ken. a. Ken won $1,200 in an illegal game of poker (the game was played in Utah, where gambling is illegal). b. Ken sold 1,000 shares of stock for $32 a share. He inherited the stock two years ago. His tax basis (or investment) in t he stock was $31 per share. c. Ken received $25,000 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually fo r 20 years, for $210,000. d. Ken received $13,000 in disability benefits for the year. He purchased the disability insurance policy last year. e. 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. f. Ken's son, Mike, instructed his employer to make half of his final paycheck of the year payable to Ken as a gift from Mi ke to Ken. Ken received the check on December 30 in the amount of $1,100. g. Ken received a $610 refund of the $3,600 in state income taxes his employer withheld from his pay last year. Ken clai med $6.400 in itemized deductions last year (the standard deduction for a single filer was $6,350). h. Ken received $30,000 of interest from corporate bonds and money market accounts. Complete page 2 of Form 1040, Line 1-6 and Form 1040, Schedule 1, Lines 1-22 for Ken. (Input all the values as positive numbers. Enter any non-financial information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any given information or Problem Statement. Use 2018 tax laws.) 1049 for a single taxpayer Complete page 2 of Form 1040, Line 1-6 and Form 1040, Schedule 1, Lines 1-22 for Ken. (Input all the values as positive numbers. Enter any non-financial information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any given information or Problem Statement. Use 2018 tax laws.) 1040 for a single taxpayer. 1040 PG 2 Schedule 1 Page 2 of Form 1040. Page 2 Form 1040 (2018) 1 Wages, salaries, tips, etc. Attach Form W-2 2a Tax-exempt interest Attach Form(s) W-2. Also attach Formis) 3a Qualified dividends W-2G and 1099-R if 4a IRAs, pensions, and annuities tax was withheld. 5a Social security benefits 5a 6 Total income. Add lines 1 through 5. Add any amount from Schedule 1, line b Taxable interest b Ordinary dividends b Taxable amount b Taxable amount 1040 PG 2 Schedule 1 Required information Schedule 1 of Form 1040. OMB No. 1545-0074 2018 Attachment Sequence No. 01 Your social security number 1-9b SCHEDULE 1 Additional Income and Adjustments to Income (Form 1040) Department of the Treasury Attach to Form 1040. Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest information. Name(s) shown on Form 1040 Ken Additional 1-9 b Reserved Income 10 Taxable refunds, credits, or offsets of state and local income taxes 11 Alimony received 12 Business income or loss). Attach Schedule C or C-EZ 13 Capital gain or loss). Attach Schedule D if required. If not required, check here 14 Other gains or losses). Attach Form 4797 15a Reserved 16a Reserved 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 18 Farm income or loss). Attach Schedule F 19 Unemployment compensation 20a Reserved 21 Other income. List type and amount Gambling Income 22 Combine the amounts in the far right column. If you don't have any adjustments to income, enter here and on Form 1040, line 6. Otherwise, go to line 23 14 16b 17 18 19 20b 21 1040 PG 2 Schedule 1 Required information [The following information applies to the questions displayed below.] 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. Determine Ken's gross income and complete page 2 of Form 1040 (through line 6) and Schedule 1 for Ken. a. Ken won $1,200 in an illegal game of poker (the game was played in Utah, where gambling is illegal). b. Ken sold 1,000 shares of stock for $32 a share. He inherited the stock two years ago. His tax basis (or investment) in t he stock was $31 per share. c. Ken received $25,000 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually fo r 20 years, for $210,000. d. Ken received $13,000 in disability benefits for the year. He purchased the disability insurance policy last year. e. 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. f. Ken's son, Mike, instructed his employer to make half of his final paycheck of the year payable to Ken as a gift from Mi ke to Ken. Ken received the check on December 30 in the amount of $1,100. g. Ken received a $610 refund of the $3,600 in state income taxes his employer withheld from his pay last year. Ken clai med $6.400 in itemized deductions last year (the standard deduction for a single filer was $6,350). h. Ken received $30,000 of interest from corporate bonds and money market accounts. Complete page 2 of Form 1040, Line 1-6 and Form 1040, Schedule 1, Lines 1-22 for Ken. (Input all the values as positive numbers. Enter any non-financial information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any given information or Problem Statement. Use 2018 tax laws.) 1049 for a single taxpayer Complete page 2 of Form 1040, Line 1-6 and Form 1040, Schedule 1, Lines 1-22 for Ken. (Input all the values as positive numbers. Enter any non-financial information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any given information or Problem Statement. Use 2018 tax laws.) 1040 for a single taxpayer. 1040 PG 2 Schedule 1 Page 2 of Form 1040. Page 2 Form 1040 (2018) 1 Wages, salaries, tips, etc. Attach Form W-2 2a Tax-exempt interest Attach Form(s) W-2. Also attach Formis) 3a Qualified dividends W-2G and 1099-R if 4a IRAs, pensions, and annuities tax was withheld. 5a Social security benefits 5a 6 Total income. Add lines 1 through 5. Add any amount from Schedule 1, line b Taxable interest b Ordinary dividends b Taxable amount b Taxable amount 1040 PG 2 Schedule 1 Required information Schedule 1 of Form 1040. OMB No. 1545-0074 2018 Attachment Sequence No. 01 Your social security number 1-9b SCHEDULE 1 Additional Income and Adjustments to Income (Form 1040) Department of the Treasury Attach to Form 1040. Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest information. Name(s) shown on Form 1040 Ken Additional 1-9 b Reserved Income 10 Taxable refunds, credits, or offsets of state and local income taxes 11 Alimony received 12 Business income or loss). Attach Schedule C or C-EZ 13 Capital gain or loss). Attach Schedule D if required. If not required, check here 14 Other gains or losses). Attach Form 4797 15a Reserved 16a Reserved 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 18 Farm income or loss). Attach Schedule F 19 Unemployment compensation 20a Reserved 21 Other income. List type and amount Gambling Income 22 Combine the amounts in the far right column. If you don't have any adjustments to income, enter here and on Form 1040, line 6. Otherwise, go to line 23 14 16b 17 18 19 20b 21 1040 PG 2 Schedule 1