Mr. and Mrs. L are married with no dependent children. Mr. L worked for Smart Tech Corporation January through March and for Computer Associates the remainder of the year. Mrs. L finished her degree in November and immediately began as an associate with Smith and Weber. They report the following information:

Mr. L's salary from Smart Tech............................$32,000

Mr. L's salary from Computer Associates................122,000

Mrs. L's salary from Smith and Weber.....................15,550

Interest from savings account....................................700

Itemized deductions.............................................9,000

Dividends eligible for 15% rate...............................2,200

a. Compute AGI.

b. Compute taxable income.

c. Compute net tax liability (after credits).