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.