QUESTION 1 Harry and Ginny Potter have been married for 20 years and have four children who qualify as their dependents (Lily, 6; Albus, 9; Severus, 15; and Sirius, 18). The couple received salary income of $270,000 and they sold their home this year. They initially purchased the home 8 years ago for $250,000 and have lived in it ever since. They sold it for $650,000. They sold some stock they had owned for 4 years and had a $8,000 loss on the sale. The Potter's also cashed in a Certificate of Deposit early during the year and paid a $975 penalty on the early withdrawal. The Potter accumulated $29,850 of itemized deductions and they had $10,550 withheld from their paychecks for federal taxes. Dedactic FOR AG Adjusted Grosso Standard Deaction Limined Dedactions The Income Tax Liability Other Ter es. Credits A DOR Refund Use the table below to show what you did and did not include in Gross Income, Deductions and/or other items and your explanation. Feel free to add additional rows as necessary. Hem Explanation