Warren and Yong Kim are married taxpayers, filing jointly. They live at 777 Kingston Place, Anaheim, California 92830. They were both born in 1935 and are now retired. Their SSNs are: Warren 121-33-4321; Young 151-66-6092.They own their home, which they paid off in 1998, and another home that they paid for in cash as an investment (Warren considers it his pension). Their investment home was rented for the entire year and is located just one block over at 9021 Jasmine Way. The following income and expense information relate to the rental activity. For the purpose of this return problem, do not consider passive activity rules or limitations.Rental income$27,600Real estate taxes$7,952Utilities$1,603Mortgage interest$0Repairs and maintenance$3,616DepreciationSee following informationThey placed the rental home into service on March 1st, 2004, and of the $515,000 purchase price, $426,000 was allocated to the land.In addition to the rental, they received interest of $1,086 from American Credit Union and interest of $2,200 from Bank of California. Social security benefits were $13,190 for Warren and $8,822 for Young.Prepare the Kims federal tax return for2007. Use Form 1040, Schedule B, Schedule E, and Form 4562. Do not complete Form 8829. Assume they do not qualify for any credits.