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:

Solid-Waste

Waste comprising of non-liquid materials that come from residential, industrial, and commercial sources.

Hazardous-Waste Detoxification

The process of removing or reducing hazardous substances from waste to minimize their impact on health and the environment.

Post-Consumer Waste

Materials discarded after being used by a consumer, typically referring to recyclable items.

Pre-Consumer Waste

Pre-consumer waste is waste generated in the manufacturing process before the product reaches the consumer, such as production scraps and trimmings.