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. 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 the stock was $31 per share. c. Ken received $14,500 in gross income from an annuity he purchased eight years ago (include the full amount in gross income). 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, earned $1,100 in overtime compensation. Mike instructed his employer to make the paycheck payable to ken as a gift from Mike to Ken. Ken received the check on December 30 in the amount of $1,100. g. Ken received a $50 state income tax refund. All $50 is included in gross income. 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. Even though it is a 2018 tax form, use 2019 tax laws; 2019 tax forms were not available at the time the publisher published the textbook.) 1040 for a single taxpayer. 1040 PG 2 Schedule 1 Page 2 of Form 1040. Form 1040 (2018) Page 2 1 2b 3b Attach Form(s) W-2. Also attach Form(s) W- 2G and 1099-R if tax was withheld. 1 Wages, salaries, tips, etc. Attach Form W-2 2a Tax-exempt interest 2a 3a Qualified dividends 3a 4a IRAs, pensions, and annuities 4a 5a Social security benefits 5a 6 Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 b Taxable interest b Ordinary dividends b Taxable amount b Taxable amount 4b 5b 6 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. 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 the stock was $31 per share. c. Ken received $14,500 in gross income from an annuity he purchased eight years ago (include the full amount in gross income). 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, earned $1,100 in overtime compensation. Mike instructed his employer to make the paycheck payable to ken as a gift from Mike to Ken. Ken received the check on December 30 in the amount of $1,100. g. Ken received a $50 state income tax refund. All $50 is included in gross income. 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. Even though it is a 2018 tax form, use 2019 tax laws; 2019 tax forms were not available at the time the publisher published the textbook.) 1040 for a single taxpayer. 1040 PG 2 Schedule 1 Page 2 of Form 1040. Form 1040 (2018) Page 2 1 2b 3b Attach Form(s) W-2. Also attach Form(s) W- 2G and 1099-R if tax was withheld. 1 Wages, salaries, tips, etc. Attach Form W-2 2a Tax-exempt interest 2a 3a Qualified dividends 3a 4a IRAs, pensions, and annuities 4a 5a Social security benefits 5a 6 Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 b Taxable interest b Ordinary dividends b Taxable amount b Taxable amount 4b 5b 6