During 2016 Richard and Denisa, Who Are Married and Have

question 127

Essay

During 2016 Richard and Denisa, who are married and have two dependent children, have the following income and losses:
$\begin{array}{ll}\text { Total salaries } & \$ 150,000 \\\text { Bank account interest } & 25,000 \\\text { Short-term capital gains } & 4,000 \\\text { Short-term capital losses } & (1,500)\end{array}$ They also incurred the following expenses:
$\begin{array}{ll}\text { Qualified medical expenses } & \$ 8,000 \\\text { State income taxes paid } & 12,000 \\\text { Property taxes on home } & 2,300 \\\text { Qualified residence interest } & 9,000 \\\text { Investment interest expense } & 7,500 \\\text { Cash charitable contributions } & 15,000 \\\text { Tax return preparation fees and assistance with audit } & 3,600 \\\text { Unreimbursed employee business expenses } & 4,000\end{array}$ Compute Richard and Denisa's taxable income for the year. (Show all calculations in good form.)

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Definitions:

Leukocytosis

An increase in the number of white blood cells.

Surgical Asepsis

A method used to prevent microbial contamination during surgeries or invasive procedures to maintain a sterile environment.

Sterile Gloved

Wearing gloves that have been treated to be free from all microorganisms to maintain sterility during medical procedures.

Disinfecting Item

A process or product intended to eliminate pathogens and reduce the risk of spreading infections on surfaces or objects.