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Demarco and Janine Jackson have been married for 2 0 years and have four children who qualify as their dependents ( Damarcus , Jasmine, Michael,

Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents (Damarcus, Jasmine, Michael, and Candice). The Jacksons file a joint tax return. The couple received salary income of $104,500 and qualified business income of $10,500 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $202,500 and they sold it for $252,500. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $16,600 of itemized deductions, and they had $4,000 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.)
Required:
c. What would their taxable income be if their itemized deductions totaled $28,100 instead of $16,600?
d. What would their taxable income be if they had $0 itemized deductions and $6,200 of for AGI deductions?
e. Assume the original facts but now suppose the Jacksons also incurred a loss of $5,050 on the sale of some of their investment assets. What effect does the $5,050 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?

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