Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Mare contributed $2,500 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,500 (under a divorce decree effective June 1, 2005). Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $2,000 child tax credit for Matthew. Marc and Michelle pald $6,000 of expenditures that qualify as itemized deductions and they had a total of $3,500 in federal Income taxes withheld from their paychecks during the year. (Use the tax rate schedules.) Comprehensive Problem 4-55 Part-a through e . What is Marc and Michelle's gross income? Schedule X-Single Tf taxable income is over: But not over: The tax is: $ 0 $ 9,875 10% of taxable income $ 9,875 $ 40,125 $98750 plus 12% of the excess over $9,875 $ 40,125 $ 85,525 $4,617 50 plus 22% of the excess over $40,125 $ 85,525 $ 163,300 $14,605 50 plus 24% of the excess over $85,525 $163,300 $207,350 $33,271.50 plus 32% of the excess over $163,300 $207,350 $518,400 $47,367.50 plus 35% of the excess over $207,350 $518,400 $156,235 plus 37% of the excess over $518,400 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over:But not over: The tax is: $ 0 $ 19,750 10% of taxable income $ 19,750 $ 80,250 $1,975 plus 12% of the excess over $19.750 $ 80,250 $171,050 $9,235 plus 22% of the excess over $80,250 $171,050 $326,600 $29.211 plus 24% of the excess over $171,050 $326,600 $414,700 $66,543 plus 32% of the excess over $326,600 $414.700 $622,050 $94.735 plus 35% of the excess over $414,700 $622,050 $167,307.50 plus 37% of the excess over $622,050 Schedule Z-Head of Household If taxable income is over:But not over: The tax is: $ 0 $ 14,100 10% of taxable income $ 14,100 $ 53.700 $1,410 plus 12% of the excess over $14,100 $ 53,700 $ 85,500 $6,162 plus 22% of the excess over $53,700 $ 85,500 $163,300 $13,158 plus 24% of the excess over $85,500 $163,300 $207.350 $31,830 plus 32% of the excess over $163,300 $207,350 $518,400 $45,926 plus 35% of the excess over $207,350 Ir taxable income is over: But not over: The is: S 0 $ 19,750 10% of taxable income $ 19,750 S 80,250 $1975 plus 12% of the excess over $19.750 S 80,250 $171.050 $9,235 plus 22% of the excess over $80,250 $171.050 $326,600 $29.211 plus 24% of the excess over $171.050 $326,600 $414,700 $66,543 plus 32% of the excess over $326,600 $414,700 $622,050 $94,735 plus 35% of the excess over $414,700 $622,050 $167,307 50 plus 37% of the excess over $622,050 Schedule Z-Head of Household If taxable income is over: But not over: The tax is: S 0 $ 14,100 10% of taxable income $ 14,100 S 53,70051410 plus 12% of the excess over $14,100 $ 53,700 $ 85,500 $6,162 plus 22% of the excess over $53,700 $ 85,500 $163,300 $13,158 plus 24% of the excess over $85,500 $163,300 $207,350 $31,830 plus 32% of the excess over $163,300 $207,350 $518,400 $45.926 plus 35% of the excess over $207,350 $518.400 $154,793 50 plus 37% of the excess over SS18 400 Schedule Y-2.Married Filing Separately If taxable income is over: But not over: The tax is: $ 0 $ 9,875 10% of taxable income $9.875 $ 40,125 598750 plus 12% of the excess over 59.875 $ 40,125 $ 85.525 54.617.50 plus 22% of the excess over $40.125 $ 85,525 S163,300 $14,605,50 plus 24% of the excess over 585525 $163,300 $207,350 $33,271 50 plus 32% of the excess over $163,300 $207,350 S311,025 547.367.50 plus 35% of the excess over $207,350 $311.025 $83,653.75 plus 37% of the excess over 5311.025 a. What Is Marc and Michelle's gross income? Description Marc's salary Michelle's salary Corporate bond interest Amount 64,000 12,000 500 Gross income $ 76,500 b. What Is Marc and Michelle's adjusted gross income? Adjusted gross income $ 72,500 c. What is the total amount of Marc and Michelle's deductions from AGI? Total deductions from AGI $ 24,750 d. What is Marc and Michelle's taxable income? d. What is Marc and Michelle's taxable income? Taxable income $ 47,750 e. What Is Marc and Michelle's taxes payable or refund due for the year? Refund due 280