The Benjamin family had wage earnings of $185,000 in 2012. They received interest of $4,500 on corporate

Question:

The Benjamin family had wage earnings of $185,000 in 2012. They received interest of $4,500 on corporate bonds and $1,500 on bonds issued by the state. Their dividend income was $500, and they had a $1,000 long term capital gain on the sale of securities.

They paid real estate taxes of $1,450, state income tax of $3,000, and donated $550 to their church. They paid interest of $8,000 on their home mortgage. They have one dependent child. What was their tax liability for 2012?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...