Question:

give answer in 3 steps with explanation at the and of each step and final answerat the and:Comprehensive Problem 5-75 (LO 5-1, LO 5-2, LO 5-3) (Algo) [The following information applies to the questions displayed below.] Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com. Though Ken is retired, he is still very active. Ken reported the following financial information this year. Assume Ken files as a single taxpayer. a. Ken won $1,340 in an illegal game of poker (the game was played in Utah, where gambling is illegal). b. Ken sold 1140 shares of stock for $32 a share. He inherited the stock two years ago. His tax basis (or investment) in the stock was $31 per share. c. Ken received $26,400 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $221,760. d. Ken received $13,350 in disability benefits for the year. He purchased the disability insurance policy last year. e. Ken decided to go back to school to learn about European history. He is enrolled in an academic program leading to a degree and received a $640 cash scholarship for the program. He used $370 to pay for his books and tuition, and he applied the rest toward his new car payment. f. Ken's son, Mike, instructed his employer to make half of his final paycheck of the year payable to Ken as a gift from Mike to Ken. Ken received the check on December 30 in the amount of $1,310. g. Ken received a $680 refund of the $3,740 in state income taxes his employer withheld from his pay last year. Ken claimed $14,790 in itemized deductions last year (the standard deduction for a single filer was $14,600). He was able to deduct the full amount of his state income taxes last year as part of his itemized deductions. h. Ken received $31,400 of interest from corporate bonds and money market accounts. Comprehensive Problem 5-75 Part-1 (Algo) Required: 1. Determine Ken's gross income.