During 2019, Richard and Denisa, who are married and have two dependent children, have the following income and losses:

Total salaries $150,000

Bank account interest 25,000

Dividend income 5,000

Short-term capital gains 4,000

Short-term capital losses (1,500)

They also incurred the following expenses:

Qualified medical expenses $ 8,000

State income taxes paid 12,000

Property taxes on home 2,300

Qualified residence interest 9,000

Investment interest expense 7,500

Cash charitable contributions 15,000

a. Compute Richard and Denisas taxable income for the year.

b. What is the amount of their tax liability (gross tax), rounded to the nearest dollar?

c. What is the amount of their tax due or (refund) if their federal income tax for the 2019 tax year was

$18,387.00.