29. Frank and Jessie are married taxpayers filing jointly, use the cash method of accounting and the calendar year, and have the following items of income and expenses in 2020: Income Salary income (Frank) : $ 150,000 Salary income (Jessie) : 225,000 Cash inheritance from Jessie's great-aunt Lurlene 80,000 Medical expense reimbursements (2018 expenses erroneously not paid by insurance) 12,000 Interest income from James Gang, Inc. (publicly-traded "C" corporation) bond 35,000 Dividend income from Robert Ford, Ltd. (publicly-traded "C" corporation) 40,000 : : Expenses Punitive damages per lawsuit settlement paid to Frank's former business partners : $ 25,000 State of Missouri income tax withholding 6,000 Federal income tax withholding 47,600 Contributions to Frank's traditional individual retirement account (IRA) 4,750 Real property taxes paid in Clay County, Missouri 10,000 Charitable contributions to U.S.-based 501(c)(3) public charities 20,000 Medical insurance premiums paid by Jessie's employer under a group plan 15,000 Calculate Frank and Jessie's: a) gross income; b) adjusted gross income ("AGI); c) taxable income; and d) Federal income tax for 2020 (using the 2020 rate brackets and ignoring the alternative minimum tax). Assume that Frank and Jessie used the standard deduction in 2018 and were correct in doing so. If an item of income or expense is not includible in gross income or not allowable as a deduction, explain the reason(s) why