Use the information below to prepare Jack & Lilys 2019 Form 1040 and compute their tax liability

Be sure to answer the questions below

\begin{tabular}{|l|r|r|} \hline Year-2019 & Jack & \multicolumn{1}{|l|}{ Lily } \\ \hline Salaries W-2 Earnings & $65,000 & $56,077 \\ \hline Taxable Interest & 493 & \\ \hline Qualified Dividends & 172 \\ \hline Ordinary & \\ \hline Dividends & 600 & \\ \hline Tax-Exempt Interest & 2,680 & \\ \hline & & \\ \hline \end{tabular} 1.Explain and calculate the differences resulting from a $1,000 tax credit versus a $1,000 tax deduction for a single taxpayer with $40,000 of pre-tax income that takes a standard deduction of $12,000. Be sure to show your work. 2. Explain each of the following strategies for reducing current taxes: (a) maximizing deductions, (b) income shifting, (c) taxfree income, and (d) tax-deferred income. \begin{tabular}{|l|r|r|} \hline Year-2019 & Jack & \multicolumn{1}{|l|}{ Lily } \\ \hline Salaries W-2 Earnings & $65,000 & $56,077 \\ \hline Taxable Interest & 493 & \\ \hline Qualified Dividends & 172 \\ \hline Ordinary & \\ \hline Dividends & 600 & \\ \hline Tax-Exempt Interest & 2,680 & \\ \hline & & \\ \hline \end{tabular} 1.Explain and calculate the differences resulting from a $1,000 tax credit versus a $1,000 tax deduction for a single taxpayer with $40,000 of pre-tax income that takes a standard deduction of $12,000. Be sure to show your work. 2. Explain each of the following strategies for reducing current taxes: (a) maximizing deductions, (b) income shifting, (c) taxfree income, and (d) tax-deferred income