Kelly and Chanelle Chambers, ages 47 and 45, are married and live at 584 Thoreau Drive, Boston, MA 59483. Kelly's Social Security number is 111-11-1111 and Chanelle's is 222-22-2222. The Chambers have two children: Emma, age 23, and Chet, age 19. Their Social Security numbers are 333-33-3333 and 444-44-4444, respectively. Emma is a single college student and earned $8,000 during the summer. Kelly and Chanelle help Emma through school by paying for her room, board, and tuition. Emma lives at home during the summer. Chet has a physical handicap and lives at home. He attends a local university and earned S4,000 working for a marketing firm. In sum, Kelly and Chanelle provide more than 50% of both Emma's and Chet's total support for the year. Kelly is a commercial pilot for a small airline. His salary is $95,000, from which $19,000 of federal income tax and S8,000 of state income tax were withheld. Kelly also pays premiums for health, disability, and life insurance. $2,000 of the premium was for health insurance, S250 for disability, and S400 for life insurance. Chanelle owns Alliance Networks, a proprietorship that does network consulting. During the year, Chanelle's gross revenues were S23,000. She incurred the following ex penses in her business Liability insurance S 700 Software rental 5,400 Journals and magazines 150 Training seminars 1,200 Supplie 1,300 Donations to a political campaign fund 800 Kelly enjoys playing guitar and plays in a band. Kelly's band has developed a local fol- lowing. This year, his gross revenues were S1,200 for playing shows and S700 on CD sales. He incurred the following expenses: Studio rent expense S1,300 Sound system repairs 200 CD production 500 New guitar and amplifier 800