Problem 1-6 The Tax Formula for Individuals, Filing Status and Tax Computation (LO 1.3, 1.5, 1.6, 1.7) Diego, age 28, married Dolores, age 27, in 2017. Their salaries for the year amounted to $47,230 and they had interest income of $3,500. Diego and Dolores' deductions for adjusted gross income amounted to $2,000; their itemized deductions were $11,800; they claimed two exemptions on their return; and, they filed a joint return.

Table for the standard deduction Filing Status2017 Standard Deduction Single$ 6,350 Married, filing jointly12,700 Married, filing separately6,350 Head of household9,350 Qualifying widow(er) 12,700 a. What is the amount of their adjusted gross income? b. In order to minimize taxable income, Diego and Dolores willtake the standard deductionin the amount of ?? c. What is the amount of their taxable income? d. What is their tax liability for 2017?