Randy and Sharon are married and have two dependent children. Their 2019 tax and other related information is as follows:

Total salaries

$160,000

Bank account interest income

3,500

Municipal bond interest income

1,500

Value of employer provided medical insurance

12,500

Employer paid premiums for $50,000 of group term life insurance

5,500

Dividend income from ABC stock

2,000

Loan from Randy's parents

5,000

Gift from Randy's parents

15,000

Gain from the sale of qualified small business stock acquired in 2008

18,000

Total itemized deductions

27,000

Compute Randy and Sharon's taxable income. (Show all calculations in good form.)

Compute Randy and Sharon's taxable income. (Show all calculations in good form.)

2.

Kevin is a single person who earns $70,000 in salary for 2019 and has other income from a variety of investments, as follows:

Bank savings account interest$5,500

Interest from State of Missouri Bonds3,500

Dividends from XYZ Corp.7,000

Kevin received tax refunds when he filed his 2018 tax returns in April 2019. His federal refund was $600 and his state refund was $300. Kevin included his state taxes paid in 2018 in his $14,000 of itemized deduction on his 2018 return. Due to changes in circumstances, Kevin is not itemizing deductions on his 2019 return.

Compute Kevin's taxable income for 2019.