Required information Comprehensive Problem 4-56 (LO 4-1, LO 4-2, LO 4-3) (Algo) [The following information applies to the questions displayed below.] Marc and Mikkel are married and file a joint tax return. Marc and Mikkel earned salaries this year of $64,600 and $15,600, respectively. In addition to their salaries, they received interest of $362 from municipal bonds and $800 from corporate bonds. Marc contributed $2,800 to a traditional individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,800 (under a divorce decree effective June 1, 2006). Marc and Mikkel have a 10-year-old adopted son, Mason, who lived with them throughout the entire year. Thus, Marc and Mikkel are allowed to claim a $2,000 child tax credit for Mason. Marc and Mikkel paid $6,600 of expenditures that qualify as itemized deductions, and they had a total of $2,788 in federal income taxes withheld from their paychecks during the year. (Use the tax rate schedules.) Comprehensive Problem 4-56 Part-a through e (Algo) Required: a. What is Marc and Mikkel's gross income? b. What is Marc and Mikkel's adjusted gross income? c. What is the total amount of Marc and Mikkel's deductions from AGI? d. What is Marc and Mikkel's taxable income? e. What is Marc and Mikkel's taxes payable or refund due for the year? Required A Required B Required C Required D Required E

Required information Comprehensive Problem 4-56 (LO 4-1, LO 4-2, LO 4-3) (Algo) [The following information applies to the questions displayed below.] Marc and Mikkel are married and file a joint tax return. Marc and Mikkel earned salaries this year of $64,600 and $15,600. respectively. In addition to their salaries, they received interest of $362 from municipal bonds and $800 from corporate bonds. Marc contributed $2,800 to a traditional individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,800 (under a divorce decree effective June 1, 2006). Marc and Mikkel have a 10-year-old adopted son, Mason, who lived with them throughout the entire year. Thus, Marc and Mikkel are allowed to claim a $2,000 child tax credit for Mason. Marc and Mikkel paid $6,600 of expenditures that qualify as itemized deductions, and they had a total of $2,788 in federal income taxes withheld from their paychecks during the year. (Use the tax rate schedules) Comprehensive Problem 4-56 Part-a through e (Algo) Required: a. What is Marc and Mikkel's gross income? b. What is Marc and Mikkel's adjusted gross income? c. What is the total amount of Marc and Mikkel's deductions from AGI? d. What is Marc and Mikkel's taxable income? e. What is Marc and Mikkel's taxes payable or refund due for the year