• Use the following information to complete Paige Turners 2022 federal income tax return. If any information is missing, use reasonable assumptions to fill in the gaps.

1. Paige Turner is single and has two children from her previous marriage. Ali lives with Paige, and Paigeprovides more than half of her support. Leif lives with his father, Will (Leif lived with Will for all of 2022). Will provides more than half of Leifs support. Paige provides you with the following additional information:
   • She uses the cash method of accounting and a calendar year for reporting.
   • She wishes to contribute to the presidential election campaign.
   • Paige lives at 523 Essex Street, Bangor, Maine 04401.
   • Paiges birthday is May 31, 1984.
   • Alis birthday is October 5, 2013.
   • Leifs birthday is December 1, 2011.
   • Paiges Social Security number is 007-11-4727.
   • Alis Social Security number is 005-11-7232.
   • Leifs Social Security number is 004-22-3419.
   • Wills Social Security number is 006-33-6333.
   • She does not have any foreign bank accounts or trusts.
2. Paige is employed as a nuclear engineer with Atom Systems Consultants, Inc. (ASCI). ASCIs federalemployer identification number is 79-1234466. Paiges pay stubs indicate that she had $4,230 withheld in federal taxes, and $4,987 in state taxes, as well as the appropriate Social Security and Medicare taxes. ASCI has an extensive fringe benefits program for its employees.
3. Paige earned salary of $70,000 before subtracting her 401(k) and flexible spending plan contributions. Shecontributed $7,000 to her 401(k) account, and she contributed $2,500 to her flexible spending account.
4. ASCI paid $397 of whole life insurance premiums to cover Paiges personal whole life insurance policy. ASCI also paid health club dues of $600 to a nearby health club on Paiges behalf.
5. Taking advantage of ASCIs educational assistance program, during the fall Paige enrolled in two graduateengineering classes at a local college. ASCI paid her tuition, fees, and other course-related costs of $2,300.
6. Paige received free parking in the companys security garage that would normally cost

$200 per month.

1. Paige manages the safety program for ASCI. In recognition of her superior handling of three potential crisesduring the year, Paige was awarded the Employee Safety Award on December 15. The cash award was $500.
2. On January 15, 2022, Paiges father died. From her fathers estate, she received stock valued at $30,000 (hisbasis was $12,000) and her fathers house valued at $90,000 (his basis in the house was $55,000).
3. Paige owns several other investments and in February 2023 received a statement from her brokerage firm reporting the interest and dividends earned on the investments for 2022:

1099-DIV Dividends and Distributions
Entity	Description	Amount
General Dynamics	Ordinary/qualified dividends	$300
1099-INT Interest
Entity	Description	Amount
New Jersey Economic Development (bonds)	Interest	$300
IBM	Interest	700
State of Nebraska (bonds)	Interest	700
1098 - Mortgage Interest Statement
Entity	Description	Amount
Sunbelt Credit Union	Mortgage interest	$7,100
Northeast Bank	Mortgage interest	435
Form K-1 (preliminary)
Entity	Description	Amount
Grubstake Mining & Development Corp.	Ordinary income	$2,000
	Distribution	1,000

1. Paige owns 1,000 shares of Grubstake Mining & Development common stock. Grubstake is organized as an S corporation and has 100,000 shares outstanding (S corp. ID number 45-4567890). Grubstake reported taxable income of $200,000 and paid a distribution of

$1.00 per share during the current year. Paige tells you that Grubstake typically does not send out its K-1 reports until late April. However, its preliminary report (see Exhibit A) has been consistent with the K-1 for many years.Paige does not materially participate in Grubstakes activities.

1. Paige slipped on a wet spot in front of a computer store last July. She broke her ankle and was unable to work for two weeks. She incurred $1,300 in medical costs, all of which were paid by the owner of the store. The storealso gave her $1,000 for pain and suffering resulting from the injury. ASCI continued to pay her salary during the two weeks she missed because of the accident and also paid her $1,200 in disability pay for the time she was unable to work. Under its plan, ASCI pays the premiums for the disability insurance as a nontaxable fringe benefit.
2. Paige received a Form 1099-B from her broker for the sale of the following securities during 2022. The basis amounts were reported to the IRS.

Security	Sales Date	PurchaseDate	SalesPrice	Basis
Nebraska state bonds	3/14/2020	10/22/2015	$2,300	$1,89034
Cassill Corp (500 shares)	10/20/2020	2/19/2020	$8,500	$9,760

1. In addition to the taxes withheld from her salary, Paige also made timely estimated federal tax payments of$175 per quarter and timely estimated state income tax payments of $150 for the first three quarters. The $150 fourth-quarter state payment was made on December 28, 2022. Paige would like to receive a refund for any overpayment.
2. Because of her busy work schedule, Paige was unable to provide her accountant with the tax documents necessary for filing her 2021 state and federal income tax returns by the due date (July 15, 2022). In filing herextension on July 13, 2022, she made a federal tax payment of $750. Her return was eventually filed on September 25, 2022. In November 2022, she received a federal refund of $180 and a state tax refund of $60. Her itemized deductions for 2021 were $12,430.
3. Paige found a renter for her fathers house on August 1. The monthly rent is $400, and the lease agreement is for one year. The lease requires the tenant to pay the first and last months rent and a $400 security deposit. The security deposit is to be returned at the end of the lease if the property is in good condition. On August 1, Paigereceived $1,200 from the tenant per the terms of the lease agreement. In November, the plumbing froze and several pipes burst. The tenant had the repairs made and paid the $300 bill. In December, he reduced his rental payment to $100 to compensate for the plumbing repairs. Paige provides you with the following additional information for the rental in 2020:

Property taxes $770

Other maintenance expenses 285

Insurance expense 495

Management fee 350

Depreciation (to be computed) ?

1. The rental property is located at 35 Harvest Street, Orono, Maine 04473. Local practice is to allocate 12 percent of the fair market value of the property to the land. (See item #8.) Paige makes all decisions with respect to the property.
2. Paige paid $2,050 in real estate taxes on her principal residence. The real estate tax is used to pay for town schools and other municipal services.
3. Paige drives a 2020 Acura TL. Her car registration fee (based on the car year) is $50 and covers the period 1/1/2022 through 12/31/2022. In addition, she paid $280 in personal property tax to the state based on the fair market value of the car.

1. In addition to the medical costs presented in item #11, Paige incurred the following unreimbursed medical costs:

Dentist $ 310

Doctor 390

Prescription drugs 205

Over-the-counter drugs 140

Optometrist 125

Emergency room charges 440

LASIK eye surgery 6,000

Chiropractor 265

1. On March 1, Paige took advantage of low interest rates and refinanced her $75,000 home mortgage with her original lender. Paige purchased the home in 2020. The new home loan is for 15 years. She paid $215 in closingcosts and $1,500 in discount points (prepaid interest) to obtain the loan. The house is worth $155,000 and Paiges basis in the house is

$90,000. As part of the refinancing arrangement, she also obtained a $10,000 home- equity loan. She used theproceeds from the home-equity loan to reduce the balance due on her credit cards. Paige received several Form 1098 statements from her bank for interest paid by her in 2022. Details appear below (also see Exhibit A):

Primary home mortgage $7,100 Home-equityloan 435

Credit cards 498

Car loan 390

1. On May 14, 2022, Paige contributed clothing to the Salvation Army. The original cost of the clothing was $740.She has substantiation valuing the donation at $360. The Salvation Army is located at 350 Stone Ridge Road, Bangor, Maine 04401. In addition, she made the following cash contributions and received a statement from each of the following organizations acknowledging her contribution:

Larkin College $850

United Way 125

First Methodist Church 790

Amos House (homeless shelter) 200

Local Chamber of Commerce 100

Commissions earned	$21,250
Expenses:
Advertising	2,200
Real estate license	130
Rent	6,000
Utilities	695