Phil and Susan Hammond are married taxpayers filing a joint return. The couple have two dependent children. Susan has wages of $34,000 in 2016. Phil does not work due to a disability, but he is a buyer and seller of stocks. He generally buys and holds for long-term gain, but occasionally gets in and out of a stock quickly. The couple’s 2016 stock transactions are detailed below. In addition, they have $2,300 of qualifying dividends.

a. What is Phil and Susan’s AGI?

b. Complete a Form 8949 for the Hammonds (Phil’s Social Security number is 123- 45-6789). Assume that the stock sale information was reported to the Hammonds on a Form 1099–B and that basis information was provided to the IRS.

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Item Date Acquired Date Sold Cost Sales Price $ 3,000 $ 6,000 Blue stock (10 shares) Purple stock (100 shares) Beige stock (50 shares) 11/10/15 03/12/16 12/13/14 05/23/16 36,000 32,000 12/14/11 07/14/16 13,000 14,500 Red stock (100 shares) 06/29/15 05/18/16 26,000 27,000 Black stock (100 shares) 05/15/15 10/18/16 67,000 67,800 Gray stock (100 shares) 04/23/14 10/18/16 89,000 88,200