K 1. This question is worth 20 points. Amber & Bryan (both age 45), are married and file a joing tax return. 2017 income includes: 1. salary of $200,000 2. Amber was in a car accident and received compensatory damages of $25,000 for her broken nose 3. Amber also received punitive damages of $15,000; the person who hit her car was intoxicated 4. interest income from Disney bonds in the amount of $1,000 3. refiund of 2016 NN Income Taxes of $2,000 (the couple itemized their deductions in 2016;, itemized deductions exceeded the standard deduction by $5,000) 9 Amber and Bryan also incurred and paid the following expenses during the year: 6 Medical expenses 7 Parking tickets Alimony (Bryan was previously married and pays Alimony to his ex-wife) Legal fees associated with divorce proceedings-not tax related 10 Charitable contributions - paid on 12/30/17 with a credit card 11 Casualty loss (after $100 floor, but before any further limitations) 12 Mortgage payment on principal residence: principal only 13 Mortgage payment on principal residence: interest expense 14 Property taxes (real estate taxes) on personal residence Nephew, Gerardo, owns a home and could not make his property tax payment as he is unemployed. Amber paid Gerardo's property taxes (real estate taxes). 16 Federal income tax withheld 17 Qualified Moving expenses in conjuction with a new job 18 Contribution to a traditional IRA 19 Cost of new roof on personal residence 20 NJ income tax withheld $ 7,000 300 12,000 4,000 2,000 1,000 10,000 14,500 4,200 3,000 15 18,000 2,000 4,000 14,000 1,300 A. Identify items 1 through 20 as follows: if income, your response should be: taxable or not taxable, OR if an expense, your response should be: a deduction for AGI, a deduction from AGI or not deductible. An item can NOT be classified as both income AND an expense. NOTE: When preparing your answer in Part A, do not re-type every item and dollar amount. Number your responses 1-20 and provide your answer. NOTE: Certain items above require special attention. Provide a sentence or two explaining limitations, rules, etc. for the following items: 5, 6, 10, 11, 15, 19. Please put the sentence next to your response in Part A. B. Using the tax formula, beginning with Income Broadly Conceived, provide a detailed calculation of the couple's 2017 taxable income. Your answer MUST follow the tax formula or points will be deducted! Be certain to compare the standard deduction amount to total itemized deductions