1. 1) are
2) am wearing
3) do you like
4) are celebrating
5) celebrate
6) is standing
7) are dancing
8) is
9) has
10) are watching
11) play
12) do you play
2. 1) David is writing a letter
2) He and his family live in London now
3) They are celebrating the New Year's day
3) Bill and Tom are dancing
4) Tom is quite tall and slim and he has got straight fair hair
5) David plays basketball for the school team every Wednesday