1. Auggie and Judy Reynolds are married and file a joint return. They have no children. Auggie is 68 and Judy is 60. They contribute over half of the support for Judy's mother, Cora (age 85). Cora earned $675 in 2019 and received $4,900 in social security benefits as her only income. Cora lives in an apartment above the Reynolds' garage and does not pay any of her own expenses.

Auggie earned a salary of $72,650 in 2019 from his job at Korma Corp. Judy worked part-time and earned $27,720. They also received the following:

Life insurance proceeds $70,000

Interest on State of Virginia bonds $320 used to finance state budgets

Dividends on stock of a Swiss corporation $620

Interest on savings accounts $104

If the Reynolds have itemized deductions of $20,620 what is their taxable income for 2019.