Taxable Income and Tax Liability Calculations (LO. 6)

Tax Year 2020

Total income $137,700

Excludable income 1,500

Deductions for adjusted gross income 2,800

Deductions from adjusted gross income 11,000

(Hint: The standard deduction for married filing jointly is $24,800.)

Do not round intermediate computations. Round the final tax liability to the nearest cent. Refer to the tax rate schedule to calculate the following.

Based on the above information, for a couple filing jointly, their adjusted gross income (AGI) is $????; taxable income is $????; and, their tax liability is $?????.