Victor and Lorraine, ages 45 and 47, respectively, are married and are cash basis taxpayers. They had the following tax items for 2020:

Salaries of $61,000

Bad debt of $3,000 from uncollected rent

Collection of unpaid rent from a prior year of $4,000

Rental income of $60,000 (property is managed by Victor and Lorraine - does not include collection from above)

Rental expenses of $53,000 (does not include bad debt above)

Personal casualty loss (from one event; a flood after a storm) of $2,000; not in a Federally declared disaster area.

Other itemized deductions of $21,000.

They wish to file as married filing jointly. Calculate the following:

1) Adjusted Gross Income

2) Taxable income

Show calculations for partial credit.