Demarco and Janine Jackson have been marrled 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 recelved 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 initlally 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.$)$

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

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 $$5,050$ on the sale of some of their investment assets. What effect does the $$5,05\frac{O}{?}$ loss have on their taxable income?

f$.$ Assume the original facts but now suppose the Jacksons own investments that appreclated by $$10,000$ during the year. The Jacksons believe the investments will continue to appreclate, so they did not sell the investments during this year. What is the Jacksons' taxable income?

Required C Required D Required E $1$ Required F

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?

Rrex

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$5$

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