Q.2- Mr. X and Mrs. Y are married and have two dependent children. P & Q They also fully support Mrs. Ys mother who lives with them and has no income. Their 2014 tax and other related information is as follows: (2 marks)

Particulars	Amount in $
Total salaries	320,000
Bank account interest income	7,000
Municipal bond interest income	3,000
Value of employer provided medical insurance	11,000
Value of premiums for $ 100000 of group term life insurance provided by employer	1,000
Gift from XS parents	30,000
Gain from the sale of qualified small business stock acquired in 2008	30,000
Total itemized deductions	32,000
Dividend incomefrom ABC stock,	4,000
Loan from XS parents	10,000

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