aj.2 answer must be in table format or i wil give down vote  [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. Ken won $1,320 in an illegal game of poker (the game was played in Utah, where gambling is illegal). Ken sold 1,120 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. Ken received $26,200 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $220,080. Ken received $13,300 in disability benefits for the year. He purchased the disability insurance policy last year. Ken decided to go back to school to learn about European history. He received a $620 cash scholarship to attend. He used $360 to pay for his books and tuition, and he applied the rest toward his new car payment. 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 $1,280. Ken received a $670 refund of the $3,720 in state income taxes his employer withheld from his pay last year. Ken claimed $12,570 in itemized deductions last year (the standard deduction for a single filer was $12,400). Ken received $31,200 of interest from corporate bonds and money market accounts.   1. Determine Ken's gross income.

SWFT Corp Partner Estates Trusts
42nd Edition
ISBN:9780357161548
Author:Raabe
Publisher:Raabe
Chapter19: Family Tax Planning
Section: Chapter Questions
Problem 2DQ
icon
Related questions
Question

aj.2

answer must be in table format or i wil give down vote 

[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.

  1. Ken won $1,320 in an illegal game of poker (the game was played in Utah, where gambling is illegal).
  2. Ken sold 1,120 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.
  3. Ken received $26,200 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $220,080.
  4. Ken received $13,300 in disability benefits for the year. He purchased the disability insurance policy last year.
  5. Ken decided to go back to school to learn about European history. He received a $620 cash scholarship to attend. He used $360 to pay for his books and tuition, and he applied the rest toward his new car payment.
  6. 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 $1,280.
  7. Ken received a $670 refund of the $3,720 in state income taxes his employer withheld from his pay last year. Ken claimed $12,570 in itemized deductions last year (the standard deduction for a single filer was $12,400).
  8. Ken received $31,200 of interest from corporate bonds and money market accounts.

 

1. Determine Ken's gross income.

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
SWFT Corp Partner Estates Trusts
SWFT Corp Partner Estates Trusts
Accounting
ISBN:
9780357161548
Author:
Raabe
Publisher:
Cengage
SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
Accounting
ISBN:
9780357233306
Author:
Maloney
Publisher:
Cengage
SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
Accounting
ISBN:
9780357391266
Author:
Nellen
Publisher:
Cengage
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L
SWFT Individual Income Taxes
SWFT Individual Income Taxes
Accounting
ISBN:
9780357391365
Author:
YOUNG
Publisher:
Cengage
Individual Income Taxes
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT