[The following information applies to the questions displayed below.] Ken 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 $1,260 in an illegal game of poker (the game was played in Utah, where gambling is illegal). b. Ken sold 1,060 shares of stock for $32 a share. He inherited the stock two years ago. His tax basis (or investment) in the stock was $31 per share. c. Ken received $25,600 from an annulty he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $215,040. d. Ken received $13,150 in disability benefits for the year. He purchased the disability Insurance policy last year. e. Ken decided to go back to school to learn about European history. He received a $560 cash scholarship to attend. He used $330 to pay for his books and tuition, and he applied the rest toward his new car payment. f. Ken's 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 $1,190. g. Ken received a $640 refund of the $3.660 in state income taxes his employer withheld from his pay last year. Ken claimed $13,060 in Itemized deductions last year (the standard deduction for a single filer was $12,950). h. Ken received $30,600 of Interest from corporate bonds and money market accounts
[The following information applies to the questions displayed below.] Ken 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 $1,260 in an illegal game of poker (the game was played in Utah, where gambling is illegal). b. Ken sold 1,060 shares of stock for $32 a share. He inherited the stock two years ago. His tax basis (or investment) in the stock was $31 per share. c. Ken received $25,600 from an annulty he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $215,040. d. Ken received $13,150 in disability benefits for the year. He purchased the disability Insurance policy last year. e. Ken decided to go back to school to learn about European history. He received a $560 cash scholarship to attend. He used $330 to pay for his books and tuition, and he applied the rest toward his new car payment. f. Ken's 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 $1,190. g. Ken received a $640 refund of the $3.660 in state income taxes his employer withheld from his pay last year. Ken claimed $13,060 in Itemized deductions last year (the standard deduction for a single filer was $12,950). h. Ken received $30,600 of Interest from corporate bonds and money market accounts
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter4: Gross Income
Section: Chapter Questions
Problem 30P
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![[The following information applies to the questions displayed below.]
Ken 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 $1,260 in an illegal game of poker (the game was played in Utah, where gambling
is illegal).
b. Ken sold 1,060 shares of stock for $32 a share. He inherited the stock two years ago. His
tax basis (or investment) in the stock was $31 per share.
c. Ken received $25,600 from an annulty he purchased eight years ago. He purchased the
annuity, to be paid annually for 20 years, for $215,040.
d. Ken received $13,150 in disability benefits for the year. He purchased the disability
Insurance policy last year.
e. Ken decided to go back to school to learn about European history. He received a $560
cash scholarship to attend. He used $330 to pay for his books and tuition, and he applied
the rest toward his new car payment.
f. Ken's 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 $1,190.
g. Ken received a $640 refund of the $3.660 in state income taxes his employer withheld from
his pay last year. Ken claimed $13,060 in Itemized deductions last year (the standard
deduction for a single filer was $12,950).
h. Ken received $30,600 of Interest from corporate bonds and money market accounts](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2ce32a71-6eee-4d1a-9110-1df462b92201%2F515b7c41-8fb5-4c11-8241-692ffc2fb2f7%2F1q47ux8_processed.png&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
Ken 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 $1,260 in an illegal game of poker (the game was played in Utah, where gambling
is illegal).
b. Ken sold 1,060 shares of stock for $32 a share. He inherited the stock two years ago. His
tax basis (or investment) in the stock was $31 per share.
c. Ken received $25,600 from an annulty he purchased eight years ago. He purchased the
annuity, to be paid annually for 20 years, for $215,040.
d. Ken received $13,150 in disability benefits for the year. He purchased the disability
Insurance policy last year.
e. Ken decided to go back to school to learn about European history. He received a $560
cash scholarship to attend. He used $330 to pay for his books and tuition, and he applied
the rest toward his new car payment.
f. Ken's 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 $1,190.
g. Ken received a $640 refund of the $3.660 in state income taxes his employer withheld from
his pay last year. Ken claimed $13,060 in Itemized deductions last year (the standard
deduction for a single filer was $12,950).
h. Ken received $30,600 of Interest from corporate bonds and money market accounts
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