Tim and Monica Nelson are married, file a joint return, and are your newest tax clients. They provide you with the following information relating to their 2016 tax return: Tim works as a pediatrician for the county hospital. The W-2 form he received from the hospital shows wages of $150,000 and state income tax withheld of $8, 500. Monica spends much of her time volunteering, but also works as a substitute teacher for the local schools. During the year, she spent 900 hours volunteering. When she doesn't volunteer, she earns $8.00 per hour working as a substitute. The W-2 form she received from the school district shows total wages of $3, 888 and state income tax withheld of $85. On April 13, the couple paid $250 in state taxes with their 2015 state income tax return. The Nelson's state and local sales taxes in 2016 were $5, 500. On December 18, the Nelsons donated a small building to the Boy Scouts of America. They purchased the building three years ago for $80,000. A professional appraiser determined the fair market value of the home was $96,000 on December 12. Tim and Monica both received corrective eye surgery, at a total cost of $3,000. They also paid $1, 900 in health insurance premiums. On June 1, the couple bought a car for $30,000, paying $18,000 down and borrowing $12,000. They paid $750 total interest on the loan in 2016. On June 10, the Nelsons took out a home equity loan of $20,000 to expand their home. They paid a total of $850 interest with their monthly payments on the loan. The Nelsons paid a total of $2, 300 interest on their original home loan. They sold stock in Cabinets, Inc. for $5, 200, which they purchased for $7, 900 in March of the current year. They also sold stock in The Outdoor Corporation for $12, 500, which they purchased several years ago for $8, 600. Tim incurred the following expenses related to his profession, none of which were reimbursed by his employer: During the year, the couple paid their former tax advisor $700 to prepare their prior year tax return. The Nelsons do not have children, and they do not provide significant financial support to any family members. Required: Compute the Nelson's taxable income for 2016