Question

23. What is the total net amount of capital gain reported on Form 1040? OA. $308 OB. $2,411 C. $2,719 OD. $2,900

Advanced Scenario 7: Mark and Barbara Matthews Directions Using the tax software, complete the tax return, including Form 1040 and all appropri- ate forms, schedules, or worksheets. Answer the questions following the scenario. Note: When entering Social Security numbers (SSNs) or Employer Identification Numbers (EINS), replace the Xs as directed, or with any four digits of your choice. Interview Notes Mark and Barbara are married and want to file a joint return. Mark retired and began receiving retirement income on March 1, 2017. No distribu- tions were received prior to his retirement. Mark selected a joint survivor annuity for these payments. The plan cost at annuity start date was $14,500. Mark has already recovered $1,029 of his cost in the plan. The Matthews received a $125 state income tax refund from their 2018 state tax return. The Matthews do not have enough deductions to itemize for 2019 and they have never itemized deductions. Mark and Barbara stated if they are entitled to a refund, they want half of it depos- ited into their checking account and the other half deposited into their savings account. The checking account number is 123456789 and the savings account number is 987654321. Both accounts are from Adelphi Bank and Trust. SECURITY SOCIAL SEU nel SEC 317-00-XXXX SPOR Mark Matthews SOCIAL SECUR SEED 310-00-XXXX Barbara Matthews Barbara Matthews Mark Matthews

Answer 1

Option C $2,719 is the correct answer.

($2,900- $489)+$308 = $2,719.

Total net amount of capital gain reported on Form 1040 is $2,719