retired, he is still very active. Ken reported the following financial information this year. Asst taxpayer. a. Ken won $1,360 in an illegal game of poker (the game was played in Utah, where gambling is illegal). b. Ken sold 1,160 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. les as a c. Ken received $26,600 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $223,440. d. Ken received $13,400 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 $660 cash scholarship to attend. He used $380 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 $1,340. g. Ken received a $690 refund of the $3,760 in state income taxes his employer withheld from his pay last year. Ken claimed $13,160 in itemized deductions last year (the standard deduction for a single filer was $12,950). h. Ken received $31,600 of interest from corporate bonds and money market accounts. 1. Determine Ken's gross income.
retired, he is still very active. Ken reported the following financial information this year. Asst taxpayer. a. Ken won $1,360 in an illegal game of poker (the game was played in Utah, where gambling is illegal). b. Ken sold 1,160 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. les as a c. Ken received $26,600 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $223,440. d. Ken received $13,400 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 $660 cash scholarship to attend. He used $380 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 $1,340. g. Ken received a $690 refund of the $3,760 in state income taxes his employer withheld from his pay last year. Ken claimed $13,160 in itemized deductions last year (the standard deduction for a single filer was $12,950). h. Ken received $31,600 of interest from corporate bonds and money market accounts. 1. Determine Ken's gross income.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text: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 $1,360 in an illegal game of poker (the game was played in Utah, where gambling is illegal).
b. Ken sold 1,160 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 $26,600 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for
20 years, for $223,440.
d. Ken received $13,400 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 $660 cash scholarship to attend. He
used $380 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 $1,340.
g. Ken received a $690 refund of the $3,760 in state income taxes his employer withheld from his pay last year. Ken
claimed $13,160 in itemized deductions last year (the standard deduction for a single filer was $12,950).
h. Ken received $31,600 of interest from corporate bonds and money market accounts.
1. Determine Ken's gross income.
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