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R and G, both are 65 years of age and have the following sources of income: Consulting income $36,000 Interest income $4,000 Tax exempt interest

R and G, both are 65 years of age and have the following sources of income: Consulting income $36,000 Interest income $4,000 Tax exempt interest $4,000 Social Security benefits $12,000 R and G have itemized deductions of $16,000. Compute their taxable income and tax liability.

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