Michael and Monica Ramirez are married taxpayers who will file a joint return for 2021. Michael and Monica have two children, ages 14 and 12, and they will be eligible to claim a total child tax credit of $6,000 for 2021. Monica receives a monthly alimony payment from her ex-husband in the amount of $1,000 per month, and she receives a monthly child support payment of $750 per month. Her divorce from her first husband was finalized in 2017. Monica owns a 40% partnership interest in ABC Partnership. She received a cash distribution of $6,000 from the partnership in 2021. The total partnership taxable income for 2021 is $30,000. Monica is also self-employed as an event planner, and she earned $20,000 in client fees during 2021. Monica's business is organized as a sole proprietorship. Michael works as a customer service manager at a local car dealership. His salary for 2021 was $82,000. The car dealership pays for 100% of the medical and dental premiums for its employees. The premiums paid by the dealership for Michael's coverage were $10,000 for the medical plan and $3,000 for the dental plan. Michael's employer also paid the $1,000 premium on a $50,000 group term life insurance policy. Additionally, Michael's employer provided him with a membership at a local gym which was valued at $750. Michael had $8,200 of federal income taxes withheld from his paychecks during 2021. Michael completed his 20th year with the car dealership this year, and in recognition of his service, he received a watch worth $300 and a cash bonus in the amount of $700. Michael's employer offers a 401(k) plan for its employees, and Michael elected to contribute $6,000 of his salary to the 401(k) plan in 2021. His employer provided a matching contribution of $1,000. Michael has an investment account, and during 2021 he received $400 of US Treasury bond interest and $200 of dividends. Michael also sold a stock with a basis of $1,000 and a sales price of $4,000. He paid a brokerage commission of $150 on the sale. Michael and Monica reported $15,000 of "for AGI" deductions for 2021. This total includes the "for AGI" deduction for Monica's self-employment taxes. Michael and Monica also reported $18,000 of itemized deductions during 2021, and they have indicated that they did not make any charitable contributions during the year. Monica's self-employment tax liability for 2021 is $2,826. As married filing jointly taxpayers, the standard deduction for 2021 is $25,100. Using the facts provided above, prepare the individual income tax formula calculations for Michael and Monica for 2021. Please show all of your work on the "Homework Calculations" tab. For each item of realized income, please indicate whether the item is included in or excluded from gross income in the current year. Please also indicate which income items are deferrals.