I:5-67 Tax Form/Return Preparation Problems (Ch. 5)
Spence Duck (SSN XXX-XX-XXXX) is single and his eight-year-old son, Mitch, lives with him nine months of the year in a rented condominium atXXXXXin Ames, Iowa. Mitch lives with his mother, Spencer’s ex-wife, during the summer months. His mother provides more than half of Mitch’s support and Spencer has agreed to allow her to claim Mitch as her dependent. Spencer has a salary of $39,000 and itemized deductions of $4,000. Taxes withheld during the year amount to $3,221. On July 14 of the current year he sold the following assets:
 Spencer received a K-1 from a partnership indicating that his share of the partnership STCL is $200.
 Land was sold for $35,000. The land was received as a property settlement on January 10, 2001, when the lands’ FMV amounted to $30,000. His ex-wife’s basis for the land, purchased on January 10, 1991 was $18,500.
 A person-use computer acquired on March 2 last year for $4,000 was sold for $2,800.
 A membership card for a prestigious country club was sold for $8,500. The card was acquired on October 10, 1993, for $6,000
 Marketable securities held as an investment were sold for $20,000. The securities were inherited from his uncle, who died on March 10 of current year when FMV of the securities was $21,000. The uncle purchased the securities on May 10, 1990, for $10,700.
 In addition to the above sales, Spencer received a $100 refund of state income taxes paid last year. Spencer used the standard deduction last year to compute his tax liability.
REQUIRED
PREPARE FORM 1040 and Schedule D for the Current year.