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The Tax Formula for Individuals (LO 1.3)

Rahul and Ruby are married taxpayers. They are both under age 65 and in good health. For 2020 they have a total of $109,900 in wages and $750 in interest income. Rahul and Ruby's deductions for adjusted gross income amount to $4,240 and their itemized deductions equal $12,130. They claim two exemptions for the year on their joint tax return.

Table for the standard deduction

Filing Status	Standard Deduction
Single	$12,400
Married, filing jointly	24,800
Married, filing separately	12,400
Head of household	18,650
Qualifying widow(er)	24,800

a. What is the amount of Rahul and Ruby's adjusted gross income?

b. In order to minimize taxable income, Rahul and Ruby will? ------------- in the amount of $/---------fill in the blank cc97e709d058fd3_2.