Please use current tax rates, exemptions, and laws. Be sure to show ALL of your work so that I can give you partial credit. Use 2023 tax law.

Use these instructions:2023 Instruction 1040 (irs.gov).

10. Married Couple and 2 children ages: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 4,500

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

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. Do not elect to expense under 179 or special deduction. 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.