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Comprehenslve Problem $6-64($LO $6-1,$ LO $6-2,$ LO $6-3)($Algo$)$

$[$The following information applies to the questions displayed below.$]$

Shauna Coleman is single. She is employed as an architectural designer for Streamline Design $($SD$).$ Shauna wanted to

determine her taxable Income for this year. She correctly calculated her AGI. However, she wasn't sure how to compute

the rest of her taxable income. She provided the following Information with hopes that you could use it to determine her

taxable income for $2023.$

a$.$ Shauna pald $$4,700$ for medical expenses for care from a broken ankle in October. Also, Shauna's boyfrlend, Blake,

drove Shauna $($in her car$)$ a total of $115$ miles to the doctor's office so she could recelve care for her broken ankle.

b$.$ Shauna pald a total of $$3,450$ in health insurance premiums during the year $($not through an exchange$).$ SD did not

relmburse any of thls expense. Besides the health insurance premlums and the medical expenses for her broken ankle,

Shauna had Laslk eye surgery last year and pald $$3,050$ for the surgery $($she recelved no insurance relmbursement$).$

She also incurred $$470$ of other medical expenses for the year.

c$.$ SD withheld $$1,850$ of state Income tax, $$7,545$ of Soclal Security tax, and $$14,700$ of federal income tax from Shauna's

paychecks throughout the year.

d$.$ In $2023,$ Shauna was due a refund of $$270$ for overpaylng her $2022$ state taxes. On her $2022$ state tax return that she

filed in April $2023,$ she applied the overpayment toward her $2023$ state tax llability. She estlmated that her state tax

liability for $2023$ will be $$2,350.$

e$.$ Shauna pald $$3,250$ of property taxes on her personal residence. She also pald $$520$ to the developer of her

subdlvision because he had to replace the sidewalk in certain areas of the subdivision.

f$.$ Shauna pald a $$220$ property tax based on the state's estimate of the value of her car.

g$.$ Shauna has a home mortgage loan in the amount of $$230,000$ that she secured when she purchased her home. The

home Is worth about $$410,000.$ Shauna pald interest of $$12,500$ on the loan thls year.

h$.$ Shauna made several chartable contributions throughout the year. She contrlbuted stock in ZYX Corporation to the

Red Cross. On the date of the contribution, the falr market value of the donated shares was $$1,200$ and her basis in the

shares was $$480.$ Shauna orlginally bought the ZYX Corporatlon stock In $2009.$ Shauna also contributed $$320$ cash to

State University and religious artffacts she has held for several years to her church. The artffacts were valued at $$520$

and Shauna's basis in the Items was $$320.$ Shauna had every reason to belleve the church would keep them on display

Indefinitely. Shauna also drove $200$ miles doing church$-$related errands for her minister. Finally, Shauna contributed

$$1,250$ of services to her church last year.

I. Shauna pald $$270$ in investment advisory fees and another $$170$ to have her tax return prepared $($that is$,$ she pald $$170$

In $2023$ to have her $2022$ tax return prepared$).$

J$.$ Shauna is involved in horse racing as a hobby. During the year, she won $$2,550$ in prize money and Incurred $$12,000$ in

expenses. She has never had a profitable year with her horse$-$racing activitles, so she acknowledges that this Is a

hobby for federal Income tax purposes.

k$.$ Shauna sustalned $$2,050$ in gambling losses over the year $($mostly horse$-$racing bets$)$ and had only $$220$ in winnings.

Comprehenslve Problem $6-64$ Part a$-2($Algo$)$

a$-2$ Complete page $1$ of Form $1040($through taxable Income, IIne $15)$ and Schedule A assuming her AGI Is $$117,000.$

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