The Grants also received the following during the year: Interest Income from First Kentucky Bank $130 Interest Income from City of Lexington, KY Bond $450 Interest Income from U.S. Treasury Bond $675 Interest Income from Nevada State School Board Bond $150 The Grants sold 2,000 shares of General Electric stock for $25,000 on 1/4/2013. They had purchased this stock for $60,000 on 10/10/2007. They also sold 1,500 shares of Apple stock for $185,000 on 4/7/2013. They had purchased this stock for $168,000 on 3/5/2012. Disability payments received by Bob on account of injury $3,500 National Storage paid 100% of premiums the premiums on the policy and included the premium payments in Bob's taxable wages Receipt of payment by Melissa as a result of a lawsuit for damages sustained in a car accident: Medical Expenses $2,500 Emotional Distress $12,000 Punitive Damages $10,000 Total $24,500 Eight years ago, Melissa purchased an annuity contract for $88,000. This year, she received her first payment on the annuity. The payment amount was $15,000. The annuity started to pay on January 1 and she received a full first year's payment. It will pay her $15,000 per year for ten years (beginning with this year). The $15,000 payment was reported to Melissa a form 1099-R for the current year (box 7 contained an entry of "7" on the form). The Grants did not own, control or manage any foreign bank accounts nor were they a grantor or beneficiary of a foreign trust during the tax year. The Grants own a condominium, their rental property, in Covington, KY that is valued at $160,000. The condominium is located at 990 El Mark Drive, Covington, KY 79401. The Grants first rented out the El Mark unit on October 1. The following is the information from the rental activity from October through December. (Ignore depreciation for the purposes of this return). Rental revenue $3,600 HOA fee expense $300 Property taxes paid $225 Utilitiesexpense $350 2