Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Show me the steps to solve the following problem. I am more intersted on how to complete the form 1 0 4 0 and schedule

Show me the steps to solve the following problem. I am more intersted on how to complete the form 1040 and schedule 1- I have the calculations downpath-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 $1,220 in an illegal game of poker (the game was played in Utah, where gambling is illegal).
b. Ken sold 1,020 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 $25,200 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for
20 years, for $211,680.
d. Ken received $13,050 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 $520 cash scholarship to attend. He
used $310 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 $1,130.
g. Ken received a $620 refund of the $3,620 in state income taxes his employer withheld from his pay last year. Ken
claimed $12,620 in itemized deductions last year (the standard deduction for a single filer was $12,550).
h. Ken received $30,200 of interest from corporate bonds and money market accounts.
Complete page 1 of Form 1040 through line 9 and Schedule 1 for Ken.
Note: Input all the values as positive numbers. Enter any non-financlal Information, (e.g. Names, Addresses, social security
numbers) EXACTLY as they appear In any glven Information or Problem Statement. Use 2022 tax rules regardless of year on tax
form. Ken does not wish to contribute to the Presidential Election Campalgn fund and dld not have any virtual currency
transactlons or Interests.
Social security numbers:
Ken: 111-22-3333
Gambling income 1220, Gains transfer for share 1020, Annuity income 14616 Disability benefit (not reportable )13050 Gift from son (not reportable (1130) scholarship income-210 and income tax refund 70 interest income 30200.00 can you please complete the I am missing something and i do not know what it is to be reported on the 1040. thanks
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ronald W Hilton

7th Edition

0073022853, 978-0073022857

More Books

Students also viewed these Accounting questions