Jim, age 50, and Martha, age 49, are married with three dependent children. They file a joint return for 2019. Their income from salaries totals $49,500, and they received

$10,125 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 totaling $18,200. Calculate the following amounts:

a. Gross income

$

b. Adjusted gross income

$

c. Itemized deduction or standard deduction amount

$

d. Taxable income

$

e. Income tax liability (Do not consider the alternative minimum tax covered in Chapter 6 or any credits.)

$