1. Barry and Liz, both under age 65, file a joint tax return for their 2019 tax year reporting the following information:

• Income from salaries.................................................. $65,000
• Interest income.............................................................. 5,000
• Qualified dividend income............................................ 18,000
• Capital gain from sale of stock held 15 years................. 25,000
• Capital loss from sale of stock held 5 years .................. (5,400)
• Itemized expenses........................................................ 22,600

Compute the couples regular taxable income and their regular 2019 tax liability using the applicable rates for their ordinary income and any alternative rates for other qualifying income. Ignore the net investment income tax.