Problem 1-9 The Tax Formula for Individuals, Filing Status and Tax Computation, The Standard Deduction (LO 1.3, 1.5, 1.8)

Brock, age 50, and Erin, age 49, are married with three dependent children. They file a joint return for 2020. Their income from salaries totals $50,000, and they received $8,000 in taxable interest, $5,000 in royalties, and $3,000 in other ordinary income. Brock and Erin's deductions for adjusted gross income amount to $2,500, and they have itemized deductions totaling $19,250.

Table for the standard deduction

Filing Status	Standard Deduction
Single	$12,400
Married, filing jointly	24,800
Married, filing separately	12,400
Head of household	18,650
Qualifying widow(er)	24,800

Click here to access the tax tables.

Calculate the following amounts:

a. Gross income	$fill in the blank 1
b. Adjusted gross income	$fill in the blank 2
c. Itemized deduction or standard deduction amount	$fill in the blank 3
d. Taxable income	$fill in the blank 4
e. Income tax liability (before any credits)	$fill in the blank 5