Answer:
1) AGI = $112,400
2) Taxable Income = $80,600
Explanation:
Ed's Salary = $35,000
Jane's Salary = $70,000
Municipal bond interest income = $400
Qualified business income = $1,000
Alimony paid (for AGI deduction) = $7,000
Real property tax (from AGI deduction) = $10,000
Charitable contributions (from AGI) = $15,000
The total gross income for Jane and Ed = $70,000 + $35,000 = $105,000
1) Their AGI (Adjusted Gross Income) = $105,000 + $400 + $7,000 = $112,400
2)Their taxable income = $112,400 - $24400 - $7000 - $400 = $80,600
