Reference no: EM132669615

Sally W. Emanual, a teacher, had the following dividends and interest during the current year:

Acorn Corporation bond interest $700

City of Boston interest 1,000

Camp Bank interest 1.250

Jet Corporation dividend (qualified) 1,300

North Mutual fund Capital gain distribution 100

Ordinary dividend (qualified) 150

Non-taxable distribution 200 450

Blue Corporation foreign dividend 250

Additional information pertaining to Sally Emanual includes:

Salary $70,000

Rent income 12,000

Expenses related to rent income 14,000

Pension benefits 7,000

Taxable alimony paid to Sally 4,000

The taxable portion of the pension is $7,000. Sally actively participates in the rental activity. Other relevant information includes:

Address: 430 Rumsey Place, West Falls, California 92699

Occupation: Credit Manager

Social Security Number: 123-45-6789

Marital Status: Single

Date of divorce: January 10, 2017

Problem 1: Complete Sally's Schedule 1, Schedule B and complete and compute her taxable income on Form 1040 of 2019. Assume Schedule E has already been prepared.