10.Married Couple and 2 children 16 and 17

Husband earns $75,000 (and withholds tax of $10,000)

Wife earns teaching$45,000 (and withholds tax of $6,000)

In the summer, the wife runs a summer camp program and has the following items:

Income$12,000

Expenses:

Marketing1,500

Contract labor2,500

Equipment14,000 (bought in May and used 100% in business)

Contract labor2,000

Interest Income CDS3,000

Mortgage Interest10,000

Property Taxes 5,000

Medical14,000

Business expense2,000 (Non-Reimbursed husband job)

They will file married filing jointly. Take only MACRS depreciation on the equipment

but do not elect to expense under 179.Please show your work.Use 2019 tax law.

a/Compute their business income.

b/Compute their adjusted gross income.

c/Compute their itemized deductions.

d/Compute their taxable income.

e/Compute their tax liability.