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Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively....

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Accounting

Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc contributed $2,500 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,500 (under a divorce decree effective June 1, 2005). Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $2,000 child tax credit for Matthew. Marc and Michelle paid $6,000 of expenditures that qualify as itemized deductions and they had a total of $3,500 in federal income taxes withheld from their paychecks during the year. (Use the tax rate schedules.)

Gross Income = 76500

AGI= 72500

A. What is the total amount of Marc and Michelles deductions from AGI?

B. What is Marc and Michelles taxable income?

C. What is Marc and Michelles taxes payable or refund due for the year?

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