14) (11 points) Show work for partial credit. H, age 45, and W, age 43, are married with a 5 year old son. H and W always file jointly. H is the vice president of a local bank and is paid a salary of $95,000. W is registered nurse at a large hospital and is paid a salary of $80,000. H is a partner in BC partnership. He is a 50% owner. The partnership had total income of $50,000 (qualified business income) in 2021. In addition to the above income, H and W received the following in 2021: $4,000 cash dividend on ABC, Inc. stock. $750 interest on State of Michigan bonds that H owns $7,000 on interest from a saving account that H and W own together. The bank provides H with $50,000 of group term life insurance protection. The bank provides all full-time employees with group term insurance. H has worked for the bank all year. Premiums are $80 a year. W sold his car for $6,000. He paid $4,500 for it 8 months ago. W was injured on the job in 2021 and received worker's compensation in the amount of $2,000. H's grandfather passed away in February 2021 leaving H a 400-acre farm in southern Illinois valued at $500,000. H rented the land to F, a neighboring farmer for $13,000 rent in 2021. W's father gave her a gift of $20,000 in 2021. H and W had a capital loss of $2,000 in 2021. H also received $100,000 in life insurance when his grandfather died. H paid $2,000 in alimony to his ex-wife (decree 2017) and $4,000 in child support. H and W paid $7,000 in qualified mortgage interest. H and W paid $6,000 in real property taxes and $10,000 in state income taxes. H and W paid $19,000 in medical expenses that were not reimbursed by their employers or insurance. H and W contributed $5,000 in cash to a qualified charity. (a) What items are excluded from gross income? (list below) (b) What is H and W's gross income? (show work below) (c) What is H and W's adjusted gross income? (show work below) (d) What is H and W's taxable income? (show work below). (e) What is H and W's tax liability? (show work below)_