George (445-42-5432) and Christina Campbell (445-42-5433) are married with two children, Victoria, 7, and Brad, 2. Victoria and Brads Social Security numbers are 446-75-4389 and 449-63-4172, respectively. They live at 10137 Briar Creek Lane, Tulsa, OK 74105. George is the district sales representative at Red Duck, a manufacturer of sportswear. The company treats him as an independent contractor. His principal job is to solicit orders of the companys products from department stores in his territory, which includes Oklahoma and Arkansas. The company provides no office for him. Christina is a maker of fine quilts which she sells in selected shops in the surrounding area. The couple uses the cash method of accounting and reports on the calendar year. Their records for the year reveal the following information:

1. George earned $65,000 during the year and paid estimated taxes of $5,000 once during the year.
2. Christinas income and expenses of her quilting business, Crazy Quilts, include

Quilt sales	$7,000
Costs of goods sold - Materials	600
Telephone (long-distance calls)	100

Christina makes all of the quilts at home in a separate room that is used exclusively for her work. This room represents 10% of the total square footage of their home. Expenses related to operating the entire home include utilities, $2,000; and insurance, $500. Depreciation attributable solely to the home office is $800. Christina computes her deduction relating to use of her car using actual expenses, which included gas and oil, $900; insurance, $300; and repairs, $100. The car is fully depreciated. Her daily diary revealed that, for the year, she had driven the car a total of 20,000 miles, including the following trip:

Trip Description	Miles
Home to sales outlets and return	10,000
Between sales outlets	2,000
Miscellaneous personal trips	8,000

3. George incurs substantial expenses for travel and entertainment, including meals and lodging. This is the second year that George has used the standard mileage rate for computing his automobile expenses. During the year he drove 50,000 miles; 40,000 of these were directly related to business. Expenses for parking and tolls directly related to business were $90. Total meal and lodging costs for days that he was out of town overnight were $600 and $1,200, respectively. Entertainment expenses were $400.

4. This is Georges second marriage. He has one child, Ted (age 11), from his first marriage to Hazel, who has custody of the child. He provides more than 50% of the childs support. The October 6, 2015 divorce agreement between George and Hazel provides that George is entitled to the exemption for Ted. George paid Hazel $4,800 during the year, $1,600 as alimony, and the remainder as child support. Teds Social Security number is 122-23-3221.

5. The couples other income and expenses included the following:

Dividends (IBM stock owned separately by George since June of this year)	$400
Interest earned on redeemed Treasury bills	700
Interest earned on City of Reno bonds	566
Interest paid on home mortgage	23,000
State taxes on home	900
Safety deposit box fee	50
State income taxes	4,000

6. Both taxpayers elect to give to the President Campaign fund.

Compute the couples tax liability for the year ignoring any alternative minimum tax.