Please use 2020 tax law. Ignoring March 2021 Legislation and using 2020 Instructions.

Married Couple and 2 children 16 and 17

Husband earns $75,000 (and withholds tax of $10,000)

Wife earns teaching $45,000 (and withholds tax of $6,000)

In the summer, the wife runs a summer camp program and has the following items:

Income $12,000

Expenses:

Marketing 1,500

Contract labor 2,500

Equipment 14,000 (bought in May and used 100% in business)

Contract labor 2,000

Interest Income CDS 3,000

Mortgage Interest 10,000

Property Taxes 5,000

Medical 14,000

Business expense 2,000 (Non-Reimbursed husband job)

They will file married filing jointly. Take only MACRS depreciation on the equipment

but do not elect to expense under 179. Please show your work.

Compute their business income.

Compute their adjusted gross income.

Compute their itemized deductions.

Compute their taxable income.

Compute their tax liability.