60. Cecil C. Seymour is a 64-year-old widower. He had income for 2019 as follows: Pension from former employer $39,850 Interest income from Alto National Bank 5,500 Interest income on City of Alto bonds Dividends received from IBM stock held for over one year Collections on annuity contract he purchased from Great Life Insurance Social Security benefits 4,500 2,000 5,400 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 2019. Cecil's 40-year-old daughter, Sarah C. Seymour, borrowed $60,000 from Cecil on January 2, 2019. She used the money to start a new business. Cecil does not charge 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 profit- able. 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 townhouse: 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 2018 Federal income tax: $5,900 • Charitable contributions of cash to Alto Baptist Church: $7,400 • Federal interest rate: 6% • Sales taxes paid: $912 Compute Cecil's 2019 Federal income tax payable (or refund due).

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60. Cecil C. Seymour is a 64-year-old widower. He had income for 2019 as follows:
Tax Computation Probler
Pension from former employer
$39,850
Interest income from Alto National Bank
5,500
Interest income on City of Alto bonds
Dividends received from IBM stock held for over one year
4,500
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 2019.
Cecil's 40-year-old daughter, Sarah C. Seymour, borrowed $60,000 from Cecil on
January 2, 2019. She used the money to start a new business. Cecil does not charge
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 profit-
able. 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 townhouse:
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 2018 Federal income tax: $5,900
• Charitable contributions of cash to Alto Baptist Church: $7,400
• Federal interest rate: 6%
• Sales taxes paid: $912
Compute Cecil's 2019 Federal income tax payable (or refund due).
Transcribed Image Text:60. Cecil C. Seymour is a 64-year-old widower. He had income for 2019 as follows: Tax Computation Probler Pension from former employer $39,850 Interest income from Alto National Bank 5,500 Interest income on City of Alto bonds Dividends received from IBM stock held for over one year 4,500 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 2019. Cecil's 40-year-old daughter, Sarah C. Seymour, borrowed $60,000 from Cecil on January 2, 2019. She used the money to start a new business. Cecil does not charge 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 profit- able. 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 townhouse: 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 2018 Federal income tax: $5,900 • Charitable contributions of cash to Alto Baptist Church: $7,400 • Federal interest rate: 6% • Sales taxes paid: $912 Compute Cecil's 2019 Federal income tax payable (or refund due).
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