of 2 Required information: Comprehensive Problem 4-54 (LO 4-1, LO 4-2, LO 4-3) [The following information...

Transcribed Image Text:

of 2 Required information: Comprehensive Problem 4-54 (LO 4-1, LO 4-2, LO 4-3) [The following information applies to the questions displayed below.] 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. Marc contributed $2,500 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,500. 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 paid $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 course of the year. (Use the tax rate schedules.) Comprehensive Problem 4-54 Part-a through e a. What is Marc and Michelle's gross income? Answer is complete and correct. Description Amount Marc's salary es 64,000 Michelle's salary 0 12,000 Corporate bond interest 0 500 Gross income 76,500 b. What is Marc and Michelle's adjusted gross income? of 2 Required information: Comprehensive Problem 4-54 (LO 4-1, LO 4-2, LO 4-3) [The following information applies to the questions displayed below.] 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. Marc contributed $2,500 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,500. 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 paid $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 course of the year. (Use the tax rate schedules.) Comprehensive Problem 4-54 Part-a through e a. What is Marc and Michelle's gross income? Answer is complete and correct. Description Amount Marc's salary es 64,000 Michelle's salary 0 12,000 Corporate bond interest 0 500 Gross income 76,500 b. What is Marc and Michelle's adjusted gross income?