Problem $2-24$

Interest Income and Dividend Income $($LO $2\mathrm{.}9,2\mathrm{.}10)$

Sally and Charles Colonel received the following Form $1099-$DIV in $2023$:

$$ CORRECTED $($if checked$)$

PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no$.$

Kentucky East Corporation

$500$ Lancaster Avenue

Richmond, KY $40475$

$1$a Total ordinary dividends

$ $800\mathrm{.}00$ OMB No$.1545-0110$

Form $1099-$DIV

$($Rev$.$ January $2022)$ Dividends and

Distributions

$1$b Qualified dividends

$ $720\mathrm{.}00$ For calendar year

$2023$

$2$a Total capital gain distr.

$ $170\mathrm{.}002$b Unrecap. Sec. $1250$ gain

$ Copy B

For Recipient

This is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported.

PAYER'S TIN RECIPIENT'S TIN $2$c Section $1202$ gain $2$d Collectibles $(28\%)$ gain

$ $

$2$e Section $897$ ordinary dividends $2$f Section $897$ capital gain

$45-6067473313-13-1313$ $ $

RECIPIENT'S name

Sally Colonel

$3$ Nondividend distributions

$ $4$ Federal income tax withheld

$ $0\mathrm{.}00$

$5$ Section $199$A dividends $6$ Investment expenses

Street address $($including apt. no$.)$

$ $

$1045$ Gibson Bay Drive

$7$ Foreign tax paid $8$ Foreign country or U$.$S$.$ possession

City or town, state or province, country, and ZIP or foreign postal code $

Richmond, KY $40475$

$9$ Cash liquidation distributions

$ $10$ Noncash liquidation distributions

$

$11$ FATCA filing requirement

$\backslash$geoquad

$12$ Exempt$-$interest dividends

$ $13$ Specified private activity bond interest dividends

$

Account number $($see instructions$)$

$14$ State $15$ State identification no$.16$ State tax withheld

$

$

Form $1099-$DIV $($keep for your records$)$ www$.$irs.gov$/$Form$1099$DIV Department of the Treasury $-$ Internal Revenue Service

The Colonels also received the following statement from the broker:

$2023$ Combined Forms $1099$

This is important tax information and is being furnished to the IRS $($except as indicated$).$ If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported

Copy B for Recipient

OMB No$.1545-0110$

Friar Tuck Investments

$38$ Wall Street, $8$th Floor

New York, NY $10005$

Account Number Tax ID

Sally and Charles Colonel

$1045$ Gibson Bay Drive

Richmond, KY $404753100987765***-**-1313$

Payer's Federal Tax ID

$33-1357246$

Financial Adviser$/$Phone

May Marion $888-555-1212$

Form $1099-$DIV Dividend Income

Box $1$a Total Ordinary dividends Box $1$b Qualified dividends Box $2$a Total capital gain distr.

$5,400\mathrm{.}00$

$4,400\mathrm{.}00$

Box $4$ Federal income tax withheld Box $5$ Section $199$A dividends Box $6$ Investment expenses

Form $1099-$INT Interest Income

Box $1$ Interest income Box $2$ Early withdrawal penalty Box $3$ interest on U$.$S Savings Bonds and Treasury obligations

$1,900\mathrm{.}00$

$200\mathrm{.}00$

Box $4$ Federal income tax withheld Box $5$ Investment interest Box $6$ Foreign Tax Paid

Box $7$ Foreign country or U$.$S$.$ possession Box $8$ Tax$-$exempt interest Box $9$ Specified private activity bond interest

$300\mathrm{.}00$

Box $10$ Market Discount Box $11$ Bond Premium

Box $12$ Bond Premium on Treasury obligations Box $11$ Bond premium on tax$-$exempt bond

Details provided by Friar Tuck Investments:

Dividends

Security CUSIP Date Amount Type

Micron Corp $90934356603/15/2023$ $$1,000\mathrm{.}00$ Qualified dividend

$06/15/20231,000\mathrm{.}00$ Qualified dividend

$09/15/20231,000\mathrm{.}00$ Qualified dividend

$12/15/20231,000\mathrm{.}00$ Qualified dividend

Cucuko Rubber Corp $41230911109/15/20231,000\mathrm{.}00$ Nonqualified dividend

Lectrowash Inc. $86700126701/31/2023200\mathrm{.}00$ Qualified dividend

$07/31/2023200\mathrm{.}00$ Qualified dividend

Total Dividends $$5,400\mathrm{.}00$

Interest

Security Account Type Account # Amount Type

Porcine Bank MMKT BGT$334567$ $ $800\mathrm{.}00$ Interest

River Bank Preferred Savings $110005671,100\mathrm{.}00$ Interest

U$.$S$.$ Treasury Bond US Govt. Obligation $200\mathrm{.}00$ US Gov$$t interest

City of Richmond, KY Muni Bonds

Muni Bond $300\mathrm{.}00$ Muni interest

Total Interest $$2,400\mathrm{.}00$ this is the information about last question