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 $104,000 and qualified business Income of $11,000 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $205,000 and they sold it for $255,000. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $16,700 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.) a. What is the Jacksons' taxable income, and what is their tax liability or (refund)? Note: Do not round intermediate calculations. (1) Gross income (2) For AGI deductions (3) Adjusted gross income (4) Standard deduction (5) Itemized deductions Description Amount $ 115,000 0 $ 115,000 24,400 16,700 2,000 41,100 (6) Greater of standard deduction or itemized deductions 73,900 (6) Lesser of standard deduction or itemized deductions 9,615 $ 0 (12) Total tax $ 9,615 (13) Credits 0 (14) Prepayments 4,000 Tax refund with tax return $ 5,615 (1) Gross income (2) For AGI deductions (3) Adjusted gross income (4) Standard deduction (5) Itemized deductions Description (7) Deduction for qualified business income (8) Total deductions from AGI (9) Taxable income (10) Income tax liability (11) Other taxes (12) Total tax (13) Credits (14) Prepayments Tax refund with tax return + $ Amount 115,000 0 $ 115,000 24,400 16,700 6 $ 69 69 2,000 41,100 73,900 9,615 0 9,615 0 4,000 5,615