Kevin Korda, age 35, married Emily, age 30 , during 2018 . Kevin pays alimony of \(\$ 1,000\) a month and provides \(\$ 7,200\) a year in support for his son from a previous marriage. The son lives with Kevin's ex-wife, who provides \(\$ 3,000\) a year in support. During 2018, Kevin earned \(\$ 45,000\) and Emily earned \$30,000 at her regular job and \(\$ 8,000\) in self-employment income from selling cleaning products out of her home. Kevin and Emily paid \(\$ 4,800\) state income taxes, \(\$ 3,800\) property taxes on their home, \(\$ 13,000\) charitable contributions, \(\$ 8,400\) interest on their home mortgage, and \(\$ 3,000\) medical expenses. In addition, they had the following transactions during 2018:

a. Kevin sold for \(\$ 34,000\) property which he had received from his father. His father's basis in the property at the time of the gift was \(\$ 35,000\) and the fair market value was \(\$ 30,000\).

b. Kevin sold his personal use automobile (adjusted basis of \(\$ 25,000\) ) for \(\$ 15,000\) and purchased a new car for \(\$ 28,500\).

c. Emily received \(\$ 300\) in dividends from the 50 shares of \(\$ 10\) par Webster Corp. common stock which she owns. The stock has an adjusted basis of \(\$ 1,400\) to Emily and was purchased on April 28, 2018. On July 19, 2018, she also received 50 nontaxable stock rights with a fair market value of \(\$ 5\) when the fair market value of the stock was \(\$ 30\) per share. Five rights plus \(\$ 20\) entitle her to one share of common stock. On October 24, 2018, she exercised 30 of the rights and sold the other 20 for \(\$ 100\).

d. Kevin and Emily purchased 50 shares of Waverly Corp. stock for \(\$ 35\) a share on April 18, 2018. On May 19, 2018, they purchased 30 more shares for \(\$ 45\) each and on June 16,2018, they purchased 20 shares for \(\$ 50\) each. On August 11, 2018 , they sold 75 shares for \(\$ 4,500\).
Compute Kevin and Emily's taxable income. Treat any gain as ordinary income. Ignore the self-employment tax considerations.