Schedule Z-Head of Household If taxable income is over: But not over: S 0 $ 15,700 $ 15,700 $ 59,850 $ 59,850 $ 95,350 $ 95,350 $ 182,100 $231,250 $ 578,100 The tax is: 10% of taxable income $1,570 plus 12% of the excess over $15,700 $6,868 plus 22% of the excess over $59,850 $ 182,100 || $14,678 plus 24% of the excess over $95,350 $231,250 $35,498 plus 32% of the excess over $182,100 $51,226 plus 35% of the excess over $231,250 | $172,623.5 plus 37% of the excess over $578,100 $ 578,100 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: $ 0 $ 11,000 $ 44,725 $ 95,375 $ 182,100 $ 231,250 $ 346,875 $ 11,000 $ 44,725 $ 95,375 $ 182,100 $231,250 $346,875 - The tax is: 10% of taxable income $1,100 plus 12% of the excess over $11,000 $5,147 plus 22% of the excess over $44,725 $16,290 plus 24% of the excess over $95,375 $37,104 plus 32% of the excess over $182,100 $52,832 plus 35% of the excess over $231,250 $93,300.75 plus 37% of the excess over $346,875/n2023 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: S 0 $ 11,000 $ 11,000 $ 44,725 $ 95,375 $ 182,100 $231,250 $ 44,725 $ 95,375 $ 182,100 $ 231,250 $578,125 $ 578,125 The tax is: 10% of taxable income $1,100 plus 12% of the excess over $11,000 $5,147 plus 22% of the excess over $44,725 $16,290 plus 24% of the excess over $95,375 $37,104 plus 32% of the excess over $182,100 $52,832 plus 35% of the excess over $231,250 $174,238.25 plus 37% of the excess over $578,125 Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse If taxable income is over: But not over: S 0 $ 22,000 $ 89,450 $ 190,750 $ 364,200 $ 462,500 $ 693,750 $ 22,000 The tax is: 10% of taxable income $ 89,450 | $2,200 plus 12% of the excess over $22,000 $ 190,750 $10,294 plus 22% of the excess over $89,450 $364,200 $32,580 plus 24% of the excess over $190,750 $462,500 $74,208 plus 32% of the excess over $364,200 $ 693,750 $105,664 plus 35% of the excess over $462,500 $186,601.5 plus 37% of the excess over $693,750 Schedule Z-Head of Household If taxable income is over: But not over: 0 $ 15,700 $ 59,850 $ 95,350 $ 182,100 $ 231,250 $ 578,100 $ 15,700 $ 59,850 $ 95,350 $182,100 $231,250 $578,100 The tax is: 10% of taxable income $1,570 plus 12% of the excess over $15,700 $6,868 plus 22% of the excess over $59,850 $14,678 plus 24% of the excess over $95,350 $35,498 plus 32% of the excess over $182,100 $51,226 plus 35% of the excess over $231,250 $172,623.5 plus 37% of the excess over $578,100/nRequired information [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 $1,440 in an illegal game of poker (the game was played in Utah, where gambling is illegal). b. Ken sold 1,240 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 $27,400 from an annulty he purchased eight years ago. He purchased the annulty, to be paid annually for 20 years, for $230,160. d. Ken received $13,600 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 $740 cash scholarship to attend. He used $420 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 $1,460. g. Ken received a $730 refund of the $3,840 in state income taxes his employer withheld from his pay last year. Ken claimed $13,240 In Itemized deductions last year (the standard deduction for a single filer was $12,950). h. Ken received $32,400 of interest from corporate bonds and money market accounts. 2. Complete page 1 of Form 1040 through line 9 and Schedule 1 for Ken. Note: Input all the values as positive numbers. Enter any non-financial information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any given information or Problem Statement. Use 2023 tax rules regardless of year on tax form. Ken does not wish to contribute to the Presidential Election Campaign fund and did not have any virtual currency transactions or interests.

Fig: 1

Fig: 2

Fig: 3