Comprehensive Problem $4-57($LO $4-1,$ LO $4-2,$ LO $4-3)($Algo$)$

$[$The following information applies to the questions displayed below$]]$

Demarco and Janine Jackson have been married for $20$ years and have four children who quallity as

their dependents $($Damarcus$,$ Jasmine, Michael, and Candicel. The Jacksons file a joint tax return. The

couple received salary income of $$93,000$ and qualfied business income of $$22,000$ from an

investment in a partnership, and they sold their home this year. They initially purchased the home three

years ago for $$260,000$ and they sold it for $$310,000.$ The gain on the sale qualified for the exclusion

from the sale of a principal residence. The Jacksons incurred $$18,900$ of itemited deductions, and they

had $$4,000$ withheld from their paychecks for federal taves. They are also allowed to claim a child tax

credit for each of their children. However, because Candice was $18$ years of age at year end, the

Jacksons may cloim o child tax credit for other qualifying dependents for Candice. $($Use the

tox rate schedules$)$

Comprehensive Problem $4\mathrm{.}57$ Parts$-$cthrough f $($Algo$)$

Required:

c$.$ What would their taxable income be if their inemized diedtetsens fotalis $$36\mathrm{.}400$ instead of $$13,900?$

d$.$ What would their taxable income be if shey had $50$ iemmized deduetens and $$10,800$ of for AGI decluctions?

e$.$ Assume the original facts but now suppose she dacksong aise inclured a losg of $56\mathrm{.}200$ on the sale of some of their

investment assets. What effect does the $$0\mathrm{.}200$ loss have on theif tamab$/$e $/$ifceme$?$

f$.$ Assume the original facts but now suppose she dacis sons own investments that appreciated by $$10,000$ during the year.

The Jacksons believe the investments will continue to appreciate, so they did not sell the investments during this year.

What is the Jacksons' taxable income?

Required C

Required D

Required E

Reguined F

What would their taxable income be if their itemized deductions totaled $$36,400$ instead of $$18,900?$