Use the following adjusts to answer question 1 and 2.

Adjustments Need to Complete the Problem 1. Mr. Smith's federal withholdings of $18,000 2. Mr. Smith's state withholdings of $7,000 3. Mrs. Smith's federal withholdings of $17,000 4. Mrs. Smith's state withholdings of $6,000 5. Real estate taxes paid on home of $4,000 6. Cash Contributions to church of $12,000 7. Clothing donations to charity that cost $3,000 but have a thrift shop value of $300 8. Contributions to homeless woman totaling $200 9. Unreimbursed medical expenses of $4,000 10. Home mortgage interest of $12,000 11. Interest paid on car loan $3,000 12. Student loan interest $1,500 13. Alimony paid to Mr. Smith's ex-wife for divorce agreement finalized in 2015) totaling $15,000 14. Tax preparation fees $1,000 15. Cost to replace roof on personal residence for normal wear and tear $20,000 16. Unreimbursed cost for Mr. Smith to attend continuing education conference totaling $3,500 Instructions: Answer the questions below using the scenario and provided adjustments. For Question 4, be sure to include a reference and citation to cite the required source used. Scenario Mr. Smith is an attorney and Mrs. Smith is an insurance broker. They are married filing jointly. Total income reported on Form 1040 for tax year 2019 is $120,000, and the standard deduction is $24,400. Questions Calculations/Answers 1. Calculate Mr. and Mrs. Smith's taxable income by entering the adjustments from the case study below. 2. Determine if they should take the standard deduction or itemize deductions to arrive at taxable income. 3. Explain why you chose to either itemize or take the standard deduction for each. Support your answers with evidence and cite your sources using an APA reference and citation. Adjustments Need to Complete the Problem 1. Mr. Smith's federal withholdings of $18,000 2. Mr. Smith's state withholdings of $7,000 3. Mrs. Smith's federal withholdings of $17,000 4. Mrs. Smith's state withholdings of $6,000 5. Real estate taxes paid on home of $4,000 6. Cash Contributions to church of $12,000 7. Clothing donations to charity that cost $3,000 but have a thrift shop value of $300 8. Contributions to homeless woman totaling $200 9. Unreimbursed medical expenses of $4,000 10. Home mortgage interest of $12,000 11. Interest paid on car loan $3,000 12. Student loan interest $1,500 13. Alimony paid to Mr. Smith's ex-wife for divorce agreement finalized in 2015) totaling $15,000 14. Tax preparation fees $1,000 15. Cost to replace roof on personal residence for normal wear and tear $20,000 16. Unreimbursed cost for Mr. Smith to attend continuing education conference totaling $3,500 Instructions: Answer the questions below using the scenario and provided adjustments. For Question 4, be sure to include a reference and citation to cite the required source used. Scenario Mr. Smith is an attorney and Mrs. Smith is an insurance broker. They are married filing jointly. Total income reported on Form 1040 for tax year 2019 is $120,000, and the standard deduction is $24,400. Questions Calculations/Answers 1. Calculate Mr. and Mrs. Smith's taxable income by entering the adjustments from the case study below. 2. Determine if they should take the standard deduction or itemize deductions to arrive at taxable income. 3. Explain why you chose to either itemize or take the standard deduction for each. Support your answers with evidence and cite your sources using an APA reference and citation