Valerie (age 52) & Stephen (age 55) McNamara have been married for 25 years and have one adult child, Tom, who is living on his own. They purchased their current home 7 years ago for $550,000.

Valerie & Stephen file joint tax returns. The table below summarizes their financial data for tax purposes. Use this information when you are answering the questions that follow.

1. Compute the McNamaras AGI. Show your work.

Tax Item	Amount
Stephens Earnings	$100,000
Valeries Earnings	$120,000
Federal Tax Withholdings	$22,700
State Income Tax Withholdings	$11,750
FICA & M/C	$15,683
Savings Account Interest (2.5% per year)	$1,800
State Refund from Prior Year	$1,200
Home Mortgage Interest Paid (original mortgage on home valued at 500,000.)	$12,500
Real Estate Taxes Paid	$16,500
Charitable Contributions	$1,000
Unreimbursed Medical Expenses	$2,800
Stock Ownership: Union Motor Company (purchased 9 months ago & which they still hold)	Current Value: $4,000 Cost basis: $10,000
Whole Life Insurance Policy	Face Value: $100,000 Cash Value: $8,800 Owner: Stephen Beneficiary: Valerie Insured: Stephen Policy Dividend: $300

1. Compute the McNamaras AGI. Show your work.