1.Mr. and Mrs. David file a joint tax return. They have $169,300 taxable income in 2016, $120,300 of which is ordinary income and $49,000 of which is taxed at a 15% preferential rate. Compute their tax savings from the preferential rate.

a.$6,370

b.$5,422

c.$4,900

d.None of the above.

2.Melissa, age 16, is claimed as a dependent on her parents' tax return. This year, Melissa earned $510 from babysitting and $220 interest income from a savings account. Compute Melissa's standard deduction.

a.$730

b.$860

c.$510

d.$1,050

3.Tamara and Todd Goble, ages 66 and 60, file a joint return. Todd is legally blind. Compute their standard deduction.

a.$15,700

b.$12,600

c.$13,850

d.$15,100

4.Mr. and Mrs. Upton's marginal tax rate on their joint return is 33%. This year, their itemized deductions totaled $13,800, and their standard deduction (MFJ) was $12,600. Compute their incremental tax savings from their itemized deductions.

a.$0

b.$396

c.$4,158

d.$4,554