Basma and her husband, Emin, are considering retirement in 2019. She believes that she

and her husband will get $27,000 each year for social security benefits. They file MFJ and

she estimates their other income as follows:

Withdrawals from 401K plans (all taxable) $24,000

Interest from cash investments 2,500

Dividends from shares held 2,000

Interest from State of Iowa bonds 1,500

Required:

1. How much of their social security benefits will be taxable?

2. What is their taxable income for 2019?