Sally W. Emanual, a teacher, had the following dividends and interest during the current year: Acorn Corporation bond interest $700 City of Boston interest 1,000 Camp Bank interest 1.250 Jet Corporation dividend (qualified) 1,300 North Mutual fund Capital gain distribution 100 Ordinary dividend (qualified) 150 Non-taxable distribution 200 450 Blue Corporation foreign dividend 250 Additional information pertaining to Sally Emanual includes:

Salary $70,000

Rent income 12,000

Expenses related to rent income 14,000

Pension benefits 7,000

Taxable alimony paid to Sally 4,000

The taxable portion of the pension is $7,000.

Sally actively participates in the rental activity. Other relevant information includes:

Address: 430 Rumsey Place, West Falls, California 92699

Occupation: Credit Manager

Social Security Number: 123-45-6789

Marital Status: Single

Date of divorce: January 10, 2017

Complete Sallys Schedule 1, Schedule B and complete and compute her taxable income on Form 1040. Assume Schedule E has already been prepared.