Requlred Intormation

$[$The following informetion applies to the questions displayed below.$]$

Disns snd Rysn Workman were msrried on Jonusry $1$ of last year. Rysn hea en eight$-$year$-$ald son, Jorge, from h$\text{'}$s prevlaus

marrioge. Disna warks ss s computer programmer st Datafile lincorporsted $($Dl$)$ earning a sa ary of $$106,000.$ Rysn ls se f$-$

employed and runs s dsy care center. The Workmons reported the following financisl informstion pertaining to their

activities during the current year

a$.$ Disne earned s $$106,000$ selery for the year

b$.$ Disns borrowed $$14,000$ from DI to purchsse a car. Dl charged her $2$ percent linterest $($$$290)$ on the losn, which Dians

poid on December $31.$ Dl would have charged Disns $$920$ if Interest hisd been calculated st the spplicable feders

interest rate. Assume thet tox ovolidance was not o motve for the losn.

c$.$ Ryon recelved $$3,000$ in olmany and $$6,500$ in child support poyments from his former spouse. They divorced in $2016.$

d$.$ Ryen won a $$1,100$ cesh prize at his church$-$sponsored Bingo gome.

e$.$ The Workmans recelved $$1,500$ of interest from corporate bonds and $$1,250$ of intereat from $s$ municlpal bond. Ryen

awned these bonds before he married Dsins.

f$.$ The couple bought $90$ shsres of ABC Incorporsted stock for $$60$ per shere on July $2$ The stock was worth $$87$ s shere

an December $3$i$.$ The stock poid s dividend of $$1$ per share on December $1.$

Ryon's fother possed swsy on Aprl $14.$ He inherited csah of $$70,000$ from his fother ond his bosebell cord collection,

volued at $$4,000.$ As the beneficiory of his fother's life insurance polisy, Ryan aso recelved $$170,000.$

h$.$ The couple spent a weekend in Atisntic City in November and came home with groas gambling winning: of $$3200.$

L$.$ Disno recelved $$4,400$cas for resching $10$ years of continuous service ot $DI.$

She recelved $$10,000$ from her dissblity Inaurence. Dl po'd the premiums for Disns, but it reported the smount af the

premluma sa compenastion to Disns on her year$-$end W$-2.$

k$.$ The drunk driver who hit Diens in port $(7)$ was requlred to poy her $$4,000$ medical coats, $$3,500$ for the emationel

troums she suffered from the sccident, and $$9,000$ for punitive damsges.

L$.$ For meeting her performance gools thls year, Dians was informed on December $27$ that ahe would recelve a $$7,000$

Florida$)$ on December $29.$ Disns didn't recelve the check at hame until Janusry $2$

m$.$ Ryon is o $10$ percent owner of MNO Incorporsted, a Subchapter S corporstion. The compony reported ordinary

bualnes: income for the year of $$132,000.$ Rysen acqulred the MNO atock two yesrs ago.

n$.$ Ryon's doy cse business co ected $$135,000$ in revenues. In odition, customers owed him $$13,000$ st year$-$end. During

the year, Ryen spent $$15,500$ for supples, $$11,500$ for utilites, $$35,000$ for rent, snd $$1,500$ for mlacelaneous

expenses. One customer gove him use of thelr vacation home for a week $($warth $$12,500)$ in exchange for Rysan

olowing their child to stend the doy care center free of chsrge. Ryon sccounts for his business sctwites us'ng the csah

method of eccounting.

a$.$ Disns's employer poys the couple's annusl hesith insursnce premiums of $$15,500$ for a quslified plan.

:uming the Workmens file s joint tox retum, determine their gross income minus expenses on the doy cere buaineas $($this is celled

Income on the Farm $1040.$

suming the Workmans Iwe in Cslfiorn'e, a community property atste, snd that Disne snd Rysn fie sepsrately, what is Disna's gross

me minus expenses on the doy care bualneas?