(d) The Johnsons are buying a home that has monthly mortgage payments of $3000, or $36,000 a year.

Of this amount, about $32,000 goes for interest and real estate property taxes, both of which are tax deductible. The couple has an additional

$6400 in itemized deductions, thus they have a total of $38,400 ($32,000  $6400). Using these numbers and Table 4.2, calculate their taxable income and tax liability.