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).

7. Jerry and Jess (under 60) have 3 children. They inherited money in January and retired. Here is their income.

Inherited Assets 2,000,000

Chase Interest Income 75,000

Municipal bond interest 40,000

Qualifying dividends 25,000

They have itemized deductions of $15,000. They provide over half of the support of all of their children who live with them and are:

• Jeff 18 not a student making $10,000
• Barb 20 not a student making $3,000
• Stephanie 21 a full-time student making $8,000
• Is Jeff a dependent? Why?

• Is Barb a dependent? Why?

• Is Stephanie a dependent? Why?

• Compute their adjusted gross income.
• Compute their taxable income.
• Compute their tax liability.
• Compute the tax liability for their children.