Problem $4-54($LO$.4,5)$

Linda and Don are married and file a joint return. In $2023,$

they received $$12,000$ in Social Security benefits and $$35,000$

in taxable pension benefits and interest. The applicable

higher$/$lower bases for Social Security computations for

married filing jointly are $$32,000$ and $$44,000.$

a$.$ Compute the couple's adjusted gross income on a joint

return.

$

$x$

Feedbackb. Don would like to know whether they should sell for

$$100,000($at no gain or loss$)$ a corporate bond that pays $8\%$

in interest each year and use the proceeds to buy a $$100,000$

nontaxable State of Virginia bond that will pay $$6,000$ in

interest each year. Assume that their marginal tax rate is

$12\%.$

Although the interest received on the state bond is

$,$ it still is included $v$ in modified adjusted gross

income, impacting the taxability of their Social Security

benefits. Their AGI would be $

$x.$

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c$.$ In the preceding situation part $($a$),$ if Linda works part$-$time

and earns $$30,000,$ by how much would Linda and Don's

adjusted gross income increase?