Rodney and Alice Jones have three small

children, ranging in age from 5 to 10. One child is blind and needs special care. Rodney works as

an accountant for a large CPA firm and has gross income of $45,000. Alice is a lawyer with a

national law firm and earns $48,000. Rodneys parents are quite old, and he and his two brothers

entirely support them according to the following percentages:

Rodney

45%

Steven

40%

Robert

15%

The brothers decide that in 2013 Rodney should be allowed to declare his parents as

dependents.

Rodneys employer provides group-term life insurance at twice the employees annual salary.

Rodney is 40 years of age.

During 2013, Rodney and Alice receive the following dividends on their jointly held

investments:

Dividends from Mexico Inc. (Mexican Corp.)

$700

Dividends from Widget Steel Corp.

150

They received interest income from the following investments:

Interest on State of Ohio highway bonds

$800

Interest on deposits in savings and loans

400

The Joneses have itemized deductions of $15,000. Compute their taxable income.