Comprehensive Problem (Tax Return Problem). Barry and Connie Rawles, husband and

wife, are both age 34 and have two sons. Barry earned $51,000 and Connie earned $45,000

during 2015. Barry and Connie paid $3,200 state income taxes, $12,000 federal income taxes,

$3,500 property taxes, $4,600 to First Presbyterian Church, $600 to needy families, $6,400

interest on their home mortgage, and $6,800 medical expenses. In addition, they had the

following transactions:

a.

They sold their personal residence for $170,000. Their basis in the residence was $104,000.

They incurred $7,000 in selling expenses. They purchased a new residence six months later for

$220,000.

b.

Connie sold for $40,000 property she had inherited from her father in 2010. Her fathers basis

in the property was $15,000 and the fair market value on the date of death was $30,000.

c.

They sold for $6,000 business property which they had acquired as a gift in 2012. The basis to

the donor was $7,500 and the fair market value on the date of the gift was $7,000.

d.

They exchanged 100 shares of Conway Corp. common stock, with a basis of $3,000, for 75

shares of Conway Corp. nonvoting common stock with a fair market value of $10,000.

Determine Barry and Connies lowest taxable income .Treat all income as ordinary income.

USE TAX FOR 2015 -1040 SCH A including form 47-97, D including form 89-49