Required information

Comprehensive Problem $4-57($LO $4-1,$ LO $4-2,$ LO $4-3)($Algo$)$

$[$The following information applies to the questions displayed below.$]$

Demarco and Janine Jackson have been married for $20$ years and have four children who qualify as their dependents

$($Damarcus$,$ Jasmine, Michael, and Candice$).$ The Jacksons file a joint tax return. The couple received salary income of

$$104,500$ and qualified business income of $$10,500$ from an investment in a partnership, and they sold their home this

year. They initially purchased the home three years ago for $$202,500$ and they sold it for $$252,500.$ The gain on the sale

qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $$16,600$ of itemized deductions,

and they had $$4,000$ withheld from their paychecks for federal taxes. They are also allowed to claim a child tax credit for

each of their children. However, because Candice was $18$ years of age at year end, the Jacksons may claim a child tax

credit for other qualifying dependents for Candice. $($Use the tax rate schedules.$)$

Comprehensive Problem $4-57$ Parts$-$c through f $($Algo$)$

Required:

c$.$ What would their taxable income be if their itemized deductions totaled $$34,100$ instead of $$16,600?$

d$.$ What would their taxable income be if they had $$0$ itemized deductions and $$6,200$ of for AGI deductions?

e$.$ Assume the original facts but now suppose the Jacksons also incurred a loss of $$5,050$ on the sale of some of their investment

assets. What effect does the $$5,050$ loss have on their taxable income?

f$.$ Assume the original facts but now suppose the Jacksons own investments that appreciated by $$10,000$ during the year. The

Jacksons believe the investments will continue to appreciate, so they did not sell the investments during this year. What is the

Jacksons' taxable income?

C$.$ What would their taxable income be if their itemized deductions totaled $$34,100$ instead of $$16,600?$

D$.$ What would their taxable income be if they had $$0$ itemized deductions and $$6200$ of for AGI deductions?