Mark and Stacy Smith have been married for 20 years and have four children who qualify as their dependents (Josh, Adam, Lucy, and Lily) Mark earns salary income of S100,000 and he had S3,550 withheld from his paychecks for federal taxes Stacy has qualified business income of S10,000 from an investment in a partnership The Smith sold their home this year. They initially purchased the home three years ago for $200,000 and they sold it for S250,000. The gain on the sale qualified for the exclusion from the sale of a principal residence The Smiths incurred $16,500 of itemized deductions. They are allowed to claim a child tax credit as appropriate under the tax law for each of their children. Note - Josh is 18 years and all of the other children are under the age of 17. a. What is the Smith's taxable income and what is their tax liability or (refund)? (Show the details of your work.) b. What would their taxable income be if their itemized deductions totaled $28,000 instead of $16,500? (Show the details of your work.) c. What would their taxable income be if they had $0 itemized deductions and $6,000 of for AGI deductions? (Show the details of your work.) d. Assume the original facts but now suppose the Smiths also incurred a loss of $5,000 on the sale of some of their investment assets. What effect does the $5,000 loss have on their taxable income? (Show the details of your work.) e. Assume the original facts but now suppose the Smiths own investments that appreciated by S10,000 during the year. The Smiths believe the investments will continue to appreciate, so they did not sell the investments during this year. What is the Smiths taxable income? (Show the details of your work.)