Required Information [The following Information applies to the questions displayed below.] Demarco and Janine Jackson have been married for 20 years and have four children (no children under age 6 at year- end) who qualify as their dependents (Damarcus, Jasmine, Michael, and Candice). The couple received salary Income of $95,000 and qualified business Income of $20,000 from an Investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $250,000 and they sold it for $300,000. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons Incurred $18,500 of Itemized deductions (no charitable contributions), 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.) Required: c. What would their taxable income be if their itemized deductions totaled $30,000 Instead of $18,500? d. What would their taxable income be if they had $0 Itemized deductions and $10,000 of for AGI deductions? e. Assume the original facts but now suppose the Jacksons also incurred a loss of $6,000 on the sale of some of their Investment assets. What effect does the $6,000 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? Required C Required D Required E Required F What would their taxable income be if their itemized deductions totaled $30,000 instead of $18,500? (1) Gross income (2) For AGI deductions (3) Adjusted gross income (4) Standard deduction (5) Itemized deductions Description (7) Deduction for qualified business income (8) Total deductions from AGI Taxable income Amount < Required C Required D >