James and Marie are married and have filed a joint tax return since 2002.They have two school age children who lived with them all year.In January 2017 Marie's cousin, Carol, came to live with them.Carol had no income for the entire year and depended entirely on James and Marie for support.In 2017, James and Marie had the following income and expenses:

*Wages$120,500

*Interestfrom NYSbonds$1,950

*Interest on savingsaccount$2,500

*Stock dividend (no cash option / FMV on date received)$9,500

*Long-term capitalgain$21,000

*Short term capitalloss$28,000

*Section 1244 loss$20,000

*Medicalexpenses$10,000

*Donationof LTCG property to charitable organization

AdjustmentBasis$58,000

FairMarketValue$72,000

Determine James and Marie's AGI for 2017.

a.$103,000

b.$100,000

c.$83,000

d.$80,000

e.None of the above

How much can they deduct for medical expenses assuming a 7.5% limitation?

a.$10,000

b.$2,275

c.$2,500

d.$775

e.None of the above

How much can they deduct for donations (assuming no election)?

a.$30,000

b.$50,000

c.$58,000

d.$72,000

e.None of the Above

How much of the donations can be carried over (assuming noelection)?

a.$8,000

b.$42,000

c.$58,000

d.$72,000

e.None of the above

Determine the capital losscarryover.

a.$28,000

b.$20,000

c.$7,000

d.$4,000

e.None of the above

Determine taxable income before deduction for exemption and assuming no election.

a.$67,500

b.$70,000

c.$87,500

d.$100,000

e.None of the above