Demarco and Janine Jackson have been married for $20$ years and have four

children who qualify as their dependents $($Damarcus$,$ Jasmine, Michael, and

$($andice$).$ The Jacksons file a joint tax return. The couple received salary

income of $$100,500$ and qualified business income of $$14,500$ from an

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

purchased the home three years ago for $$222,500$ and they sold it for

$$272,500.$ The gain on the sale qualified for the exclusion from the sale of a

principal residence. The Jacksons incurred $$17,400$ 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.$)$

Comprehensive Problem $4-57$ Parts$-$c through f $($Algo$)$

Required:

c$.$ What would their taxable income be if their itemized deductions totaled $$28,900$ instead of

$$17,400?$

d$.$ What would their taxable income be if they had $$0$ itemized deductions and $$7,800$ of for AGI

deductions?

e$.$ Assume the original facts but now suppose the Jacksons also incurred a loss of $$5,450$ on the

sale of some of their investment assets. What effect does the $$5,450$ 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?

What would their taxable income be if their itemized deductions totaled $$28,900$ instead of $$17,400?$c$.$ What would their taxable income be if their itemized deductions totaled $$28,900$ instead of $$17,400?$

d$.$ What would their taxable income be if they had $$0$ itemized deductions and $$7,800$ of for AGI deductions?

e$.$ Assume the original facts but now suppose the Jacksons also incurred a loss of $$5,450$ on the sale of some of their investment assets. What effect does the $$5,450$ 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?

Required C

Required D

Required E

Required $F$

What would their taxable income be if their itemized deductions totaled $$28,900$ instead of $$17,400?$

$\backslash$table$[[$Description$,$Amount$],[(1)$ Gross income,$],[(2)$ For AGI deductions,$],[(3)$ Adjusted gross income,$],[(4)$ Standard deduction,$],[(5)$ Itemized deductions,$],[,],[(7)$ Deduction for qualified business income,$],[(8)$ Total deductions from AGI,$],[$Taxable income,$]]$