Jim (age 50) and Martha (age 49) are married with three dependent children. They file a joint return for 2010. Their income from salaries totals $50,000, and they received

$10,000 in taxable interest, $5,000 in royalties, and $3,000 in other ordinary income.

Jim and Martha’s deductions for adjusted gross income amount to $3,200, and they have itemized deductions totalling $12,000. Calculate the following amounts:

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a. Gross income b. Adjusted gross income c. Itemized deduction or standard deduction amount d. Number of exemptions e. Taxable income f. Income tax liability (Do not consider the alternative minimum tax covered in Chapter 6 or any credits including the Making Work Pay credit.) SSSSSS $ $ $ $