Jim (age 50) and Martha (age 49) are married with three dependent children. They file a joint return for 2016. Their income from salaries totals $49,500, and they
received $10,125 in taxable interest, $5,000 in royalties, and $3,000 in other ordinary income. Jim and Martha’s deductions for adjusted gross income amount to $3,200, and they have itemized deductions totaling $13,200. Calculate the following amounts:

a. Gross income

$

b. Adjusted gross income

$

c. Itemized deduction or standard deduction amount

$

d. Number of exemptions

$

e. Taxable income

$

f. Income tax liability (Do not consider the alternative minimum tax covered in Chapter 6 or any credits.)

$