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Eric Amoth $($Social Security Number $551-11-1111)$ is $50$ years old and married to Mary Amoth, age $34,$

$($Social Security Number $552-45-6789).$ Formerly, Mary was Eric$$s secretary$,$ but quit work to raise their

children. They live at $1313$ Mockingbird Lane, Mockingbird Heights, CA $92506.$ They file a joint return

and have two dependent children, Anakin, age $13$ and Rey, age $14.$ Anakin$$s social security number is

$551-45-6888$ and Rey$$s social security number is $552-45-6777.$ Neither is interested in helping to fund

the Presidential Election Campaign Fund. They have interest in cypto currency. Eric and Mary come to

you for help with the preparation of their $2023$ tax return and have provided the details for the

following transactions:

$$ Eric received $$200,000$ in salary from Red Steel Corporation, where he is a construction

engineer. Federal withholding was $$37,750$ and the appropriate FICA and Medicare withholding

was done. CA withholding was $$15,100.$

$$ Eric$$s mother passed away $6/22/2023.$ He received a parcel of land worth $$50,000$ on

$6/22/2023,$ no alternative valuation date was elected. He sold the land on $12/24/2023$ for

$$50,600.$ He also received life insurance proceeds in the amount of $$150,000.$ He invested a

portion of the proceeds from the sale into Disney stock for his three children. The value of the

Disney stock at the time of purchase was $$10,000$ per child.

$$ Eric and Mary received $$10,400$ from Los Angeles school district bonds.

$$ Eric received $$5,300$ interest from a Merrill Lynch money market account.

$$ Eric received $$15,000$ of dividend income from Ford Motor Company stock that he owned for

over $2$ years.

$$ Mary received $50$ shares of Applegate Corporation common stock as a stock dividends. The

shares has a fair market value of $$2,500$ at the time Mary received them and she did not have

the option of receiving cash.

$$ The Amoth$$s gave to the Goodwill items with a FMV of $$650.$ They provided the receipt for the

household goods donated on $7/15.$ The goodwill is the local one in Mockingbird Heights at $123$

High Street.

$$ The Amoths own their home. They provided to you a Form $1098$ with the mortgage interest paid

by them to Rocket Mortgage. The total interest was $$14,000.$ Additionally, the property taxes

were impounded by Rocket Mortgagee and were $$4,500$ for the year.

$$ The Amoths made charitable contributions to recognized charities for which they have receipts

in the amount of $$15,800.$

$$ Additionally, the Amoths made a contribution of $$3,500$ to the Reelect Major Munster$$s political

campaign.

$$ Eric and Mary wish to contribute the maximum to an Individual Retirement Account for

$2023$ for each of them. There is no retirement plan at Red Steel Corporation.

$$ Eric and Mary contributed $$5,000$ for each of the three children$$s separate qualified tuition

plans for $2023.$

Compute the Amoth$$s net federal tax payable $($or refund due$)$ for $2023.$ Please prepare $1040$ and

applicable other form that would be needed to file a tax return with the IRS in $2023.$ DO NOT PREPARE

THE CALIFORNIA RETURN.

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