QUESTION: COMPUTE THE MCNAMARA'S AGI.show your working

Valerie (age 52) & Stephen (age 55) McNamara have been married for 25 years and have one adult child, Tom, who is living on his own. They purchased their current home 7 years ago for $550,000 Valerie & Stephen file joint tax returns. The table below summarizes their financial data for tax purposes. Use this information when you are answering the questions that follow. Amount $100,000 $120,000 $22,700 $11.750 $15,683 $1,800 Tax Item Stephen's Earnings Valerie's Earnings Federal Tax Withholdings State Income Tax Withholdings FICA & M/C Savings Account Interest (2.5% per year) State Refund from Prior Year Home Mortgage Interest Paid (original mortgage on home valued at 500,000.) Real Estate Taxes Paid Charitable Contributions Unreimbursed Medical Expenses Stock Ownership: Union Motor Company (purchased 9 months ago & which they still hold) Whole Life Insurance Policy $1,200 $12,500 $16,500 $1,000 $2,800 Current Value: $4,000 Cost basis. $10,000 Face Value: $100,000 Cash Value: $8,800 Owner: Stephen Beneficiary: Valerie - Insured: Stephen Policy Dividend: $300 The Malavesitemized deductions for their federal return last year. Currently, neither Valerie nor Stephen has access to a qualified retirement plan through their work and they have not funded IRAs up to this point in time. They have access to a Section 125 flexible spending account through Valerie's employer. To date, they have not funded the account Open enrollment is coming up and lasts for the next 30 days. For purposes of solving this case, use the tax information shown below APPENDIX INCOME TAX RATES SCHEDULES 701) SINGE Taxable income 30 $9,125 $9,526 - 18,700 3,7012 82,501 157.500 157,501200 200 201 - 500,000 500,501 Standard Deckiction Tax on lower Amount 30 957 4,453 14,00 50 32.00 45,619 50 150,6819 12,000 Tax Rate on faces 10 12 220X 24 32 PM 35X 97 MARRIED FILING JOINTLY AND SURVIVING SPOUSES . Taxable income $0 $19,050 19051 - 77,400 77,401 - 165,000 165,001 - 315,000 315,001 - 400,000 400,001 - 600,000 600,001 Standard Deduction Tax on Lower Amerint $0 1,90500 8.907.00 26,17900 64,179.00 91,379.00 161,379 0 12,000 Tax fate on tres 100% 12 22. 24.0% 32.0% 35.0X 37.0% HEAD OF HOUSEHOLD Taxable income -50-$13.500 13. 601-51 ROD 51 801 - 82.500 82.501 - 157.500 157.501 - 200,000 200,201 - 500.000 500 001 - Standard Deduction Tax on Lower Amount SO 1.360.00 5944.00 12,698 00 30,698.00 44 298.00 149,298 00 111.000 Tax late on Eacess 10.09 120% 22 ON 2401 52.0% 25.08 2740% Valerie (age 52) & Stephen (age 55) McNamara have been married for 25 years and have one adult child, Tom, who is living on his own. They purchased their current home 7 years ago for $550,000 Valerie & Stephen file joint tax returns. The table below summarizes their financial data for tax purposes. Use this information when you are answering the questions that follow. Amount $100,000 $120,000 $22,700 $11.750 $15,683 $1,800 Tax Item Stephen's Earnings Valerie's Earnings Federal Tax Withholdings State Income Tax Withholdings FICA & M/C Savings Account Interest (2.5% per year) State Refund from Prior Year Home Mortgage Interest Paid (original mortgage on home valued at 500,000.) Real Estate Taxes Paid Charitable Contributions Unreimbursed Medical Expenses Stock Ownership: Union Motor Company (purchased 9 months ago & which they still hold) Whole Life Insurance Policy $1,200 $12,500 $16,500 $1,000 $2,800 Current Value: $4,000 Cost basis. $10,000 Face Value: $100,000 Cash Value: $8,800 Owner: Stephen Beneficiary: Valerie - Insured: Stephen Policy Dividend: $300 The Malavesitemized deductions for their federal return last year. Currently, neither Valerie nor Stephen has access to a qualified retirement plan through their work and they have not funded IRAs up to this point in time. They have access to a Section 125 flexible spending account through Valerie's employer. To date, they have not funded the account Open enrollment is coming up and lasts for the next 30 days. For purposes of solving this case, use the tax information shown below APPENDIX INCOME TAX RATES SCHEDULES 701) SINGE Taxable income 30 $9,125 $9,526 - 18,700 3,7012 82,501 157.500 157,501200 200 201 - 500,000 500,501 Standard Deckiction Tax on lower Amount 30 957 4,453 14,00 50 32.00 45,619 50 150,6819 12,000 Tax Rate on faces 10 12 220X 24 32 PM 35X 97 MARRIED FILING JOINTLY AND SURVIVING SPOUSES . Taxable income $0 $19,050 19051 - 77,400 77,401 - 165,000 165,001 - 315,000 315,001 - 400,000 400,001 - 600,000 600,001 Standard Deduction Tax on Lower Amerint $0 1,90500 8.907.00 26,17900 64,179.00 91,379.00 161,379 0 12,000 Tax fate on tres 100% 12 22. 24.0% 32.0% 35.0X 37.0% HEAD OF HOUSEHOLD Taxable income -50-$13.500 13. 601-51 ROD 51 801 - 82.500 82.501 - 157.500 157.501 - 200,000 200,201 - 500.000 500 001 - Standard Deduction Tax on Lower Amount SO 1.360.00 5944.00 12,698 00 30,698.00 44 298.00 149,298 00 111.000 Tax late on Eacess 10.09 120% 22 ON 2401 52.0% 25.08 2740%