Mr. Gilbert is self-employed and makes annual contributions to a Keogh plan. Mrs. Gilberts employer doesnt offer any type of qualified retirement plan. Each spouse contributes $3,500 to a traditional IRA.

Required:

1. Compute the AGI on their joint return if AGI before an IRA deduction is $134,000.
2. Compute the AGI on their joint return if AGI before an IRA deduction is $204,600.