File second page ofform 1040 please.

1. Charlotte Burton(unmarried) is employed as an office manager at the main office ofCurrier, Ellis & Acton Law firm. Charlotte lives in a home shepurchased 15 years ago. Charlotte lived in her home with herdaughter Emily Burton and Charlotte’s younger sister Anne for theentire year. Emily is disabled and receives $3,760 of income eachyear housesitting for neighbors. Emily is able to save these fundsbecause Charlotte provides all of Emily’s support. Charlotte alsoprovides all of the support for her sister Anne Burton. Anne is awriter and sold her first book in 2018 and earned $9,000.  

2. Charlotte received a Form W-2 Wages: $93,100 ? Federal incometax withheld: 7,960 ? Social Security tax withheld: 5,772 ?Medicare tax withheld: 1,350 ? State income tax withheld: 0  

3. Charlotte sold 2,500 shares of Moors Whisper stock for $21 ashare on October 1, 2018. She purchased the stock on June 22, 2003,for $12 a share. There was a commission charge of $80 on the saleof these shares. She also sold 740 shares of Heathcliff stock for$26 a share on February 11, 2018. She purchased the stock for $71 ashare on October 6, 2016. Both of these sales were not reported toher on a 1099-B.

4. Charlotte’s father, Patrick died on August 20, 2015, leavingCharlotte his entire estate. Included in the estate was Patrick’shouse (1761 Bridge Street, El Paso, TX 79901). Patrick’s basis inthe residence was $66,000. The fair market value of the residenceon August 20, 2015 was $171,000. Charlotte has held the property asa rental property since she received it and has managed it herself,however she is not a real estate professional. To compute thedepreciation on the house, Charlotte has allocated $15,000 of theproperty’s basis to the land and the remaining amount to the house.She has depreciated the house using the MACRS rules and conventionsapplicable to residential real estate. Charlotte has collected$1,500 per month all year (12 months) for 2018. The house wasoccupied during the entire year. She did not pay anyone that wouldrequire form 1099 for work related to this house. She incurred thefollowing expenses related to the rental house during theyear:

Property Insurance $2,950 Property Taxes $3,920 Maintenance $1,670Depreciation To be computed

5. The following is a record of the medical expense that Charlottepaid during the year. The amounts reported are amounts she paid inexcess of insurance reimbursements.

Medical Insurance premiums $9,175 Prescription medications 1,350Prescription medications for Emily 600 Over-the-counter medications350 Doctor and dentists visits 875 Eyeglasses 250 Physical therapy865

6. Charlotte paid $15,730 in mortgage interest during the year toEPCU credit union. The loan balance on her loan is $239,000. Duringthe year, Charlotte also paid $8,010 in real estate property taxeson this home and $3,975 real property taxes on a cabin she owns inCloudcroft, NM.

7. Charlotte contributed cash of $7,675 to Community Church duringthe year. Community Church’s address is 333 Narrow Way, El Paso, TX79905. She has receipts.

8. Charlotte paid $6,689 in Texas sales tax this year. She has keptall her receipts.

9. Charlotte paid $3,000 to FarmHouse Adult Daycare for Emily’scare while she was working. FarmHouse Adult DayCare employer id# is85-5577412. They are located at 8686 Orchard Ave, El Paso, TX79901