Finding Tax Liability

Please calculate AGI, taxable income, tax liability (do not calculate AMT), any applicable credits, and tax due or refund amount for 2017 in the individual income tax format under the current tax legislation.

Please explain how you found the answer! Thank you!

Daniel and Mary Reynolds are married and have two children, ages 7 and 11 that qualify as their dependents. Daniel is a self-employed carpenter. Daniel earned $130,000 of revenue and incurred $80,000 of deductible business expenses. The self-employment tax totaled $7,065 (employer portion totaled $3,532) for the year and Daniel paid $2,800 in health insurance premiums. Daniel is not eligible to be covered by an employer-sponsored plan. Daniel made estimated tax payments of $25,000 total. a.) b.) Mary is a controller at a bank earning a taxable salary of $126,800. c.) Taxpayers received $900 of interest income from a CD but incurred an early withdrawal penalty of $90. They also received $700 of interest income from a bond issued by Lubbock County, $2,000 of non-qualified dividends, and $6,000 of qualified dividends. (Interest and dividends are both investment income.) d.) The Reynold's gambling winnings for the year were $2,500 e.) Received royalty revenue of $18,000 and incurred $3,000 of expenses. f.) The taxpayers received rent revenue of $22,000 and incurred deductible expenses of $12,600. g.) Daniel received an inheritance of $50,000 when his grandmother passed away during the year. h.) Mary is a limited partner (passive activity) in ABC LLC. Her share of the current year income/(loss) is ($10,000). Her basis (tax and at-risk basis) in the partnership prior to the current year loss was $8,600. Mary is also a limited partner in XYZ LLC. Her tax and at-risk basis in the partnership prior to the current year income was $20,800. Her share of the current year income/(loss) is $9,800. i.) Additionally, the taxpayers sold the following capital assets during the year: Purchased Sold Capital Asset ABC Stoclk XYZ Stock Collectible CostSales Price 1/1/2017 8/1/2017 27,000 18,000 1/1/2010 8/1/2017 15,000 27,000 1/1/2010 8/1/2017 22,000 42,000 1/1/2010 8/1/2017 25,000 17,000 1/1/2010 8/1/2017 56,000 175,000 RST Stock Renta House* *Unrecaptured Sec. 1250 Gain -$55,000 Prior year long-term capital loss carryover of ($7,500) from 2016 Daniel and Mary Reynolds are married and have two children, ages 7 and 11 that qualify as their dependents. Daniel is a self-employed carpenter. Daniel earned $130,000 of revenue and incurred $80,000 of deductible business expenses. The self-employment tax totaled $7,065 (employer portion totaled $3,532) for the year and Daniel paid $2,800 in health insurance premiums. Daniel is not eligible to be covered by an employer-sponsored plan. Daniel made estimated tax payments of $25,000 total. a.) b.) Mary is a controller at a bank earning a taxable salary of $126,800. c.) Taxpayers received $900 of interest income from a CD but incurred an early withdrawal penalty of $90. They also received $700 of interest income from a bond issued by Lubbock County, $2,000 of non-qualified dividends, and $6,000 of qualified dividends. (Interest and dividends are both investment income.) d.) The Reynold's gambling winnings for the year were $2,500 e.) Received royalty revenue of $18,000 and incurred $3,000 of expenses. f.) The taxpayers received rent revenue of $22,000 and incurred deductible expenses of $12,600. g.) Daniel received an inheritance of $50,000 when his grandmother passed away during the year. h.) Mary is a limited partner (passive activity) in ABC LLC. Her share of the current year income/(loss) is ($10,000). Her basis (tax and at-risk basis) in the partnership prior to the current year loss was $8,600. Mary is also a limited partner in XYZ LLC. Her tax and at-risk basis in the partnership prior to the current year income was $20,800. Her share of the current year income/(loss) is $9,800. i.) Additionally, the taxpayers sold the following capital assets during the year: Purchased Sold Capital Asset ABC Stoclk XYZ Stock Collectible CostSales Price 1/1/2017 8/1/2017 27,000 18,000 1/1/2010 8/1/2017 15,000 27,000 1/1/2010 8/1/2017 22,000 42,000 1/1/2010 8/1/2017 25,000 17,000 1/1/2010 8/1/2017 56,000 175,000 RST Stock Renta House* *Unrecaptured Sec. 1250 Gain -$55,000 Prior year long-term capital loss carryover of ($7,500) from 2016