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[ The following information applies to the questions displayed below. ] Ken is 6 3 years old and unmarried. He retired at age 5 5

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[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 $1,680 in an illegal game of poker (the game was played in Utah, where gambling is
illegal).
b. Ken sold 1,480 sharac n ctn n f fnr $2) a share. He inherited the stock two years ago. His tax
basis (or investm Dantmant thin tah per share.
c. Ken received $29,800 from an annuity he purchased eight years ago. He purchased the annuity,
to be paid annually for 20 years, for $250,320.
d. Ken received $14,200 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 $980 cash
scholarship to attend. He used $540 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 $1,820.
g. Ken received a $850 refund of the $4,080 in state income taxes his employer withheld from his
pay last year. Ken claimed $13,480 in itemized deductions last year (the standard deduction for a
single filer was $12,950.
h. Ken received $34,800 of interest from corporate bonds and money market accounts.
Complete page 1 of Form 1040 through line 9 and Schedule 1 for Ken.
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