Randy and Sharon Are Married and Have Two Dependent Children

question 10

Essay

Randy and Sharon are married and have two dependent children.Their 2019 tax and other related information is as follows:
$\begin{array}{|l|r|}\hline \text { Total salaries } & \$ 160,000 \\\hline \text { Bank account interest income } & 3,5000 \\\hline \text { Municipal bond interest income } & 1,500 \\\hline \text { Value of emplover provided medical insurance } & 12,500\\\hline \text { Employerpaid premiums for } \$ 50,000 \text { of group term life insurance } & 5,500 \\\hline \text { Dividend income from ABC stock } & 2,000 \\\hline \text { Loan from Randy's parents } & 5,000 \\\hline \text { Gift from Randy's parents } & 15,000 \\\hline \text { Gain from the sale of qualified small business stock acquired in } 2008 & 18,000 \\\hline \text { Total itemized deductions } & 27,000 \\\hline\end{array}$ Compute Randy and Sharon's taxable income.(Show all calculations in good form.)

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Definitions:

Subjective Norm

An individual's perception of social pressure to perform or not perform a particular behavior, influenced by the beliefs about what important others think they should do.

Volitional Control

Refers to the ability to make wilful, conscious decisions or exert self-control over one's actions and reactions.

Attitude-Behavior Consistency

The extent to which individuals’ attitudes (beliefs and feelings) about an object predict their behavior towards that object.

Cognitive Dissonance

The mental discomfort experienced by a person who holds two or more contradictory beliefs, ideas, or values at the same time.