The Lindscomb family had the following income in 2006:

Salaries 

Mark .........................$63,500

Ashley ......................... 57,900

Interest on investments

IBM bonds ................... $4,750

New York City bond ...... 1,400

Savings account ............. 2,600

The family made home mortgage payments that included interest of $16,480, and paid real estate (property) tax of $4,320 on their home. They also paid state income tax of $5,860 and donated $1,250 to well-known charities. The Lindscombs have three dependent children.

a. Calculate the family’s federally taxable income.

b. What is their tax liability assuming they file jointly as a married couple?

c. What are their average and marginal tax rates?