Susan and Jake Richardson are married. After a short period between jobs, Jake is now the manager of a small bank. Susan is employed parttime as a physical therapist. Jake is 37 years old and Susan is 34. During 2021, the Richardsons had the following items which may be important for their 2021 tax return:

Annual gifts from parents 26,000

Life insurance proceeds (uncle who passed away in 2021) 18,000

Cash inheritance from uncle 15,000

Annuity payments (total for the year), details below 12,000

Settlement amount from City Tours, details below 100,000

Blackjack winnings, details below 1,900

Talent show prize, details below 1,200

Unemployment compensation (Jake, see 1099-G) 5,250

Sale of Target stock (see 1099-B form): Susan sold 100 shares of Target stock on August 1, 2021

for $85 per share. They had purchased the stock on December 12, 2020 for $70 per share.

Sale of Starbucks stock (see 1099-B form): Susan also sold 50 shares of Starbucks stock on June

6, 2021. Her total proceeds from the sale were $3,000 and she purchased the stock on January

27, 2003 for $3,050.

Jake invested in an annuity that pays $1,000 a month for 20 years. His original investment in the

annuity is $180,000.

In July, while walking downtown, Susan was accidentally hit by a City Tour bus. The owner of the

bus, City Tours, paid her $100,000 in settlement of the personal injuries she sustained.

Jake and Susan took a trip to Las Vegas in February of 2021 and won $1,900 gambling at the

blackjack tables. Lady luck was on their side!

Jake participated in a charity talent show for the local Humane Society and won a cash prize of

$1,200. He had the prize winnings deposited into his daughter Maggies savings account.

For her service at PT Clinic, Susan received a commemorative pen worth $100.

Jake and Susan borrowed $35,000 from Wells Fargo bank on a personal loan to buy a car.

Show how each item would impact AGI and what the effect would be on taxable income?