Randy and Sharon Are Married and Have Two Dependent Children

question 53

Essay

Randy and Sharon are married and have two dependent children. Their 2016 tax and other related information is as follows:
$\begin{array}{|l|r|}\hline\text { Total salaries } & \$ 160,000 \\\hline \text { Bank account interest income } & 3,500 \\\hline \text { Municipal bond interest income } & 1,500 \\\hline \text { Value of employer provided medical insurance } & 12,500 \\\hline \text { Employer paid premiums for } \$ 50,000 \text { of group term life instrance } & 5,500 \\\hline \text { Dividend income from ABC stock } & 2,000 \\\hline \text { Loan from Randy's parents } & 5,000 \\\hline \text { Gift from Randy's parents } & 15,000 \\\hline \text { Gain from the sale of qualified small business stock acquired in 2006 } & 18,000 \\\hline \text { Total itemized deductions } & 17,000\\\hline\end{array}$ Compute Randy and Sharon's taxable income. (Show all calculations in good form.)

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