John and Georgia are a married couple with two dependent sons. Their salaries total $130,000. They have a capital loss of $8,000 and tax-exempt interest income of $1,000. They paid home mortgage interest of $10,000, state income taxes of $4,000, and medical expenses of $3,000, and they made charitable contributions of $5,000.
a. Compute their adjusted gross income.
b. Compute their total itemized deductions.
c. What is the amount of their personal exemptions?
d. Compute their taxable income.