Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents (Damarcus, Janine Jr., 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, and they had $3,050 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 is 18 years of age, the Jacksons may claim a child tax credit for other qualifying dependents for Candice. (Use the tax rate schedules.) Comprehensive Problem 4-56 Part-a a. What is the Jacksons' taxable income, and what is their tax liability or (refund)? Answer is complete but not entirely correct. Amount $ 110,000 0 (1) (2) (3) (4) (5) Description Gross income For AGI deductions Adjusted gross income Standard deduction Itemized deductions Greater of standard deductions or itemized deductions Deduction for qualified business income Total deductions from AGI Taxable income $ 110,000 24,400 16,500 (6) 24,400 (7) (8) (9) $ $ (10) (11) (12) (13) Income tax liability Other taxes Total tax $ 2,000 26,400 83,600 9,972 OC 9.972 6,500 3,050 422 X $ (14) Credits Prepayments Refund due xls