Using the appropriate forms and schedules, compute Kens Federal income tax for 2017. (Disregard the alternative minimum tax (AMT), itemized deductions, and credits; focus on income). Make realistic assumptions about any missing data. Round all dollar amounts to the nearest dollar. Enter all amounts as positive numbers. It may be necessary to complete tax schedules before completing Form 1040. When computing the tax liability, do not round your immediate calculations. If required, round your final answers to the nearest dollar. Ken Smith 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 $1,200 in an illegal game of poker (the game was played in Utah, where gambling is illegal). B)Ken received $13,000 in disability benefits for the year. He purchased the disability insurance policy last year. C)Ken decided to go back to school to learn about European history. He received a $500 cash scholarship to attend. He used $300 to pay for his books and tuition, and he applied the rest toward his new car payment. D)Kens 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 $1,100. E) Ken received a $610 refund of the $3,600 in state income taxes his employer withheld from his pay last year. Ken claimed $6,350 in itemized deductions last year (the standard deduction for a single filer was $6,300). F) Ken received $30,000 of interest from corporate bonds and money market accounts. Ken made estimated payments totaling $3,500.