3. (20) Sophia and her two kids moved into the home of her new husband, Richard Castle, in Nashville, TN. The family income consists of the following: $60,000 from Sophia's book royalties, $90,000 from Richard's salary, $10,000 in life insurance proceeds from a deceased aunt, $140 in interest from savings, $15,000 in child support from her ex-husband, $500 cash as a Christmas gift from Richard's parents; and a $1,600 tuition-and-books scholarship Sophia received to go to college part-term last year. a) What is the total of their reportable gross income? b) Which items are not taxable income? c) After Richard put $5,600 into a tax-deferred retirement plan accounts last year, what is their adjusted gross income? d) How much is the allowable standard deduction for the household? e) What is their taxable income on a joint return? f) What is their final federal income tax liability and what is their marginal tax rate? g) If Richard's employer withheld $25,000 for income taxes, does the couple owe money to the government or do they get a refund? How much? h) Give two suggestions to Sophia family to reduce next year's tax liability. 3. (20) Sophia and her two kids moved into the home of her new husband, Richard Castle, in Nashville, TN. The family income consists of the following: $60,000 from Sophia's book royalties, $90,000 from Richard's salary, $10,000 in life insurance proceeds from a deceased aunt, $140 in interest from savings, $15,000 in child support from her ex-husband, $500 cash as a Christmas gift from Richard's parents; and a $1,600 tuition-and-books scholarship Sophia received to go to college part-term last year. a) What is the total of their reportable gross income? b) Which items are not taxable income? c) After Richard put $5,600 into a tax-deferred retirement plan accounts last year, what is their adjusted gross income? d) How much is the allowable standard deduction for the household? e) What is their taxable income on a joint return? f) What is their final federal income tax liability and what is their marginal tax rate? g) If Richard's employer withheld $25,000 for income taxes, does the couple owe money to the government or do they get a refund? How much? h) Give two suggestions to Sophia family to reduce next year's tax liability