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Betty, age 39 and Steve, age 50, are married with two dependent children. They file a joint return for 2013. Their income from salaries totals
Betty, age 39 and Steve, age 50, are married with two dependent children. They file a joint return for 2013. Their income from salaries totals $155,400; they receive $1,000 in taxable interest and $2,000 in royalties. Their deductions for adjusted gross income amount to $3,200; they have itemized deductions totaling $40,000. Calculate the following amounts:
a. Gross Income
b. Adjusted gross income
c. Itemized deduction or standard deduction amount
d. Deduction for exemptions
e. Taxable income
f. Regular income tax liability from rate schedules
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