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Comprehensive Problem $5-75($LO $5-1,$ LO $5-2,$ LO $5-3)($Algo$)$

$[$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.

a$.$ Ken won $$1,280$ in an illegal game of poker $($the game was played in Utah, where gambling is illegal$).$

b$.$ Ken sold $1,080$ shares of stock for $$32$ a share. He inherited the stock two years ago. His tax basis $($or investment$)$ in the

stock was $$31$ per share.

c$.$ Ken received $$25,800$ from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for

$20$ years, for $$216,720.$

d$.$ Ken received $$13,200$ 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 $$580$ cash scholarship to attend. He

used $$340$ 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 Mike

to Ken. Ken received the check on December $30$ in the amount of $$1,220.$

g$.$ Ken received a $$650$ refund of the $$3,680$ in state income taxes his employer with

claimed $$13,080$ in itemized deductions last year $($the standard deduction for a single filer was $$12,950).$

h$.$ Ken received $$30,800$ of interest from corporate bonds and money market accounts.