Demarco and Janine Jackson have been married for $20$ years and have four children $($no children under age $6$ at year$-$

end$)$ who qualify as their dependents $($Damarcus$,$ Jasmine, Michael, and Candice$).$ The couple received salary income of

$$100,000$ and qualified business income of $$10,000$ from an investment in a partnership, and they sold their home this

year. They initially purchased the home three years ago for $$200,000$ and they sold it for $$250,000.$ The gain on the sale

qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $$16,500$ of itemized deductions

$($no charitable contributions$),$ and they had $$1,000$ withheld from their paychecks for federal taxes. 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 claim a child tax credit for other qualifying dependents for Candice. $($Use the tax rate schedules.$)$

Comprehensive Problem $4-56$ Parts$-$c through f $($Static$)$

c$.$ What would their taxable income be if their itemized deductions totaled $$28,000$ instead of $$16,500?$

d$.$ What would their taxable income be if they had $$0$ itemized deductions and $$6,000$ of for AGI deductions?

Schedule Z$-$Head of Household

e$.$ Assume the original facts but now suppose the Jacksons also incurred a loss of $$5,000$ on the sale of some of their investment

assets. What effect does the $$5,000$ loss have on their taxable income?

f$.$ Assume the original facts but now suppose the Jacksons 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?