Randy and sharon are married and have two dependant children. They also fully support Sharon’s mother who lives with them and has no income. Their 2010 tax and
other related information is as follows. Total salaries: $160,000, Bank account interest income: $3,500, Municipal bond interest income: $1,500, Value of employer
provided medical insurance: $5,500, Value of premiums for $50,000 of group life insurance provided by employer:$500, Dividend income from ABC stock: $2,000, Loan
from Randy’s parents: $5,000, Gift from randy’s parents: $10,000, Gain from the sale of stock: $7,500, total itemized deductions: $16,000. Compute Randy and
Shaon’s taxable income
