Comprehensive Problem (Tax Return Problem). Carl Chubbs, age 64, earned \(\$ 85,000\) during 2018 . His wife, Dawn, age 66, is blind. During 2018, Carl and Dawn received \(\$ 1,000\) in dividends. They sold their personal use automobile which they had owned for two years (adjusted basis of \(\$ 18,500\) ) for \(\$ 19,000\). They sold to their son 50 shares of Riverdale Corp. stock for \(\$ 500\). Their basis was \(\$ 12\) per share; fair market value was \(\$ 20\) per share. Carl and Dawn sold property Carl had inherited from his sister for \(\$ 12,500\). At the time of Carl's sister's death the basis of the property was \(\$ 7,500\) and the fair market value was \(\$ 10,000\); six months after death the fair market value was \(\$ 9,000\). The alternate valuation date was elected by the executor in valuation of the estate of Carl's sister. In addition, Carl and Dawn paid \(\$ 8,500\) interest on their home; made a cash contribution to their college alumni foundation in the amount of \(\$ 15,000\), paid state income taxes of \(\$ 4,500\), paid federal income taxes of \(\$ 8,000\), and had medical expenses of \(\$ 800\). Compute Carl and Dawn's taxable income. Treat all income as ordinary income.