Marquis (age 41) and Claire (age 43) are married taxpayers who file a joint return and use the cash basis. The couple has one child, Derek (age 21) who lives with them and for whom they provide more than 50% of the support. During 2022, the couple had the following items: Salaries Interest from City of Portland Bonds Interest from Park Corporation Bonds $132,000 $3,700 $4,500 The couple also cashed in Series EE bonds to pay for Derek's senior year in college at Northeastern University (where he was a full-time student). The couple originally purchased the bonds in 2000 for $9,700. When they cashed them in, the bonds were worth $15,800. During 2022, Derek's tuition (before scholarship) was $10,500 and the bill for his room and board was $6,800. Derek also received a scholarship of $2,000 to help defray the cost of his tuition. In addition to receiving his scholarship, Derek also worked part-time and received wages of $6,300. His parents paid $19,000 for his support during the year. Determine the couple's taxable income. Students must show all supporting calculations to receive credit.

Marquis (age 41) and Claire (age 43) are married taxpayers who file a joint return and use the cash basis. The couple has one child, Derek (age 21) who lives with them and for whom they provide more than 50% of the support. During 2022, the couple had the following items: The couple also cashed in Series EE bonds to pay for Derek's senior year in college at Northeastem University (where he was a full-time student). The couple originally purchased the bonds in 2000 for $9,700. When they cashed them in, the bonds were worth $15,800. During 2022, Derek's tuition (before scholarship) was $10,500 and the bill for his room and board was $6,800, Derek also received a scholarship of $2,000 to help defray the cost of his tuition. In addition to receiving his scholarship, Derek also worked part-time and received wages of $6,300. His parents paid $19,000 for his support during the year. Determine the couple's taxable income. Students must show all supporting calculations to receive credit