Cecil C. Seymour is a 64-year-old widower. He had income for 2018 as follows:

Pension from former employer .....................................................................$39,850
Interest income from Alto National Bank .........................................................5,500
Interest income on City of Alto bonds ..............................................................4,500
Dividends received from IBM stock held for over one year ...........................2,000
Collections on annuity contract he purchased from Great Life Insurance ...5,400
Social Security benefits .....................................................................................14,000
Rent income on townhouse ...............................................................................9,000

The cost of the annuity was $46,800, and Cecil was expected to receive a total of 260 monthly payments of $450. Cecil has received 22 payments through 2018.

Cecil’s 40-year-old daughter, Sarah C. Seymour, borrowed $60,000 from Cecil on January 2, 2018. She used the money to start a new business. Cecil does not chaige her interest because she could not afford to pay it, but he does expect to collect the principal eventually. Sarah is living with Cecil until the business becomes profitable. Except for housing, Sarah provides her own support from her business and $ 1,600 in dividends on stocks that she inherited from her mother.
Other relevant information is presented below’:

• Expenses on rental tow'nhouse:

Utilities............................$2,800
Maintenance....................1,000
Depreciation....................2,000
Real estate taxes................750
Insurance............................700

• State income taxes paid: $3,500
• County' personal property taxes paid: $2,100
• Payments on estimated 2017 Federal income tax: $5,900
• Charitable contributions of cash to Alto Baptist Church: $7,400
• Federal interest rate: 6%
• Sales taxes paid: $912

Compute Cecils 2018 Federal income tax payable (or refund due).