Problem 3-27 (LO. 1) Compute the taxable income for 2020 in each of the following independent situations. Click here to access the standard deduction table to use if required. a. Drew and Meg, ages 40 and 41, respectively, are married and file a joint return. In addition to four dependent children, they have AGI of $125,000 and itemized deductions of $27,000. AGI $125,000 Less: itemized deductions 27,000 Taxable income 98,000 b. Sybil, age 40, is single and supports her dependent parents who live with her, as well as her grandfather who is in a nursing home. She has AGI of $80,000 and itemized deductions of $8,000. AGI $80,000 Less: standard deduction : 8,000 X Taxable income 71,000 x C. Scott, age 49, is a surviving spouse. His household includes two unmarried stepsons who qualify as his dependents. He has AGI of $75,000 and itemized deductions of $10,100. AGI $75,000 Less: standard deduction 10,100 x Taxable income 64,900 x d. Amelia, age 33, is an abandoned spouse who maintains a household for her three dependent children. She has AGI of $58,000 and itemized deductions of $10,650. AGI $58,000 Less: standard deduction 10,650 X Taxable income 47,350 X e. Dale, age 42, is divorced but maintains the home in which he and his daughter, Jill, live. Jill is single and qualifies as Dale's dependent. Dale has AGI of $64,000 and itemized deductions of $9,900. AGI $64,000 Less: standard deduction 9,900 X Taxable income 54,100 x Feedback Check My Work As a general rule, personal expenditures are disallowed as deductions in arriving at taxable income. However, Congress allows specified personal expenses as itemized deductions. Such expenditures include medical expenses, certain taxes and interest, and charitable contributions. In lieu of claiming itemized eductions, taxpayers can use the standard deduction. The standard deduction is the sum of two components: the basic standard deduction and the additional standard deduction