Taxpayers, a married couple, have two dependent children (ages 5 and 3) and several potentially taxable events that occur during 2019. Husband is a federal government employee who has a $50,000 per year salary. Wife owns and operates through an LLC of which she is the sole member a catering business that generates $155,000 of gross receipts in the year, although there are various expenses related to the business which are considered below. In doing this problem, assume Taxpayers file a joint return for the year 2019. Further, assume that the rules applicable to the depreciable property, irrespective of the year in which the property is placed in service, are the same as those that apply to depreciable property placed in service in 2019.

Determine Taxpayers Tax Liability for 2019 under Section 1 assuming they file a joint return. Use the tax rates for 2019 as are set forth in 1(j).