Q.1- Mr. A and Mrs. B are married and have two dependent children. X & Y, They also fully support Mrs. Bs mother who lives with them and has no income. Their 2012 tax and other related information is as follows: (2.5 marks)

Particulars Amount in $

Value of premiums for $ 100000 of group term life insurance provided by employer 2,000

Gift from AS parents 60,000

Dividend incomefrom ABC stock, 8,000

Loan from AS parents 20,000

Total salaries 640,000

Bank account interest income 14,000

Gain from the sale of qualified small business stock acquired in 2010 60,000

Total itemized deductions 64,000

Municipal bond interest income 6,000

Value of employer provided medical insurance 22,000

Required: Compute Mr. A and Mrs.B Taxable income. (Show all calculations in proper /good form.)

PLEASE NO HAND writing. Thank you.