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Spencer Duck (SSN 000-22-1111) is single and his eight-year-old son, Mitch, lives with
him nine months of the year in a rented condominium at 321 Hickory Drive in 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 (none of the itemized deductions were charitable contributions). Taxes withheld
during the year amount to $3,221. Spencer received a K-1 from a partnership indicating
that his share of the partnership STCL is $200. On July 14 of the current year, he sold the
following assets:
• Land was sold for $35,000. The land was received as a property settlement on January
10, 2010, when the land’s FMV amounted to $30,000. His ex-wife’s basis for the land,
purchased on January 10, 2002, was $18,600.
• A personal-use computer acquired on March 2 last year for $4,000 was sold for
$2,480.
• A membership card for a prestigious country club was sold for $8,500. The card was
acquired on October 10, 2004, 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 the 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 sale
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