Dan and Cheryl are married, file a joint return, and have no children. Dan, age 45, is an independent contractor working in pharmaceutical sales and Cheryl, age 42, is a nurse at a local hospital. Dan's SSN is 400-20-1000 and Cheryl's SSN is 20040-8000 and they reside at 2033 Palmetto Drive, Atlanta, GA 30304. Dan is paid according to commissions from sales, and he has no income tax or payroll tax withholdings. Dan operates his busi-ness from his home office. During 2018, Dan earned total commissions in his business of $125,000. Cheryl earned a salary during 2018 of $45,400, with the following withhold-ings: $6,000 federal taxes, $1,800 state taxes, $2,815 OASDI, and $658 Medicare taxes.

During 2018, Dan and Cheryl had interest income from corporate bonds and bank ac-counts of $1,450 and qualified dividends from stocks of $5,950. Dan also actively trades stocks and had the following results for 2018:

LTCG ………….. $4,900

LTCL ………….. (3,200)

STCG ………….. 0

STCL ………….. (7,800)

He had no capital loss carryovers from previous years. Dan does a considerable amount of travel in connection with his business and uses his own car. During 2018, Dan drove his car a total of 38,000 miles, of which 32,000 were business related. He also had business-related parking fees and tolls during the year of $280. Dan uses the mileage method for deducting auto expenses. Dan also had the follow-ing travel expenses while away from home during the year:

Hotel	$4,200
Meals	820
Entertainment of customers	1,080
Tipa	100
Laundry and cleaning	150
Total	$6,350

Dan uses the simplified method to deduct expenses for his office-in-home. His office measures 15 feet by 12 feet in size. Cheryl incurred several expenses in connection with her nursing job. She paid $450 in professional dues, $200 in professional journals, and $350 for uniforms. Dan and Cheryl had the following other expenditures during the year:

Health insurance premiums (after-tax)	$4,400
Doctor bills	470
Real estate taxes on home	6,800
Personal property taxes	1,400
Mortgage interest-all deductible	7,400
Charitable contributions-cash	9,000
Charitable contributions-GE stock owned for 5 years:
FMV	$8,000
Adjusted basis	2,000
Tax preparation fees	750

During 2018, Dan and Cheryl paid federal and state estimated tax payments on a quarterly basis. Federal payments for the year amounted to $24,000. State estimated payments for the year amounted to $2,200. Compute Dan and Cheryl's income tax liability for 2018. Disregard the alternative minimum tax.