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Tim and Jill Taylor, ages 50 and 47, are married and file a joint federal...

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Accounting

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Tim and Jill Taylor, ages 50 and 47, are married and file a joint federal income tax return. They have three children, ages 17, 15, and 12. Their 2019 tax information is shown below. Tim's salary is $250,000. Jill is self-employed and had a net profit from her business of $18,900. She paid self-employment tax of $2,670. They had taxable interest income from various sources totaling $1,400. They had qualified dividend income of $5,500 from various investments. They had a long-term capital gain of $3,100 from the sale of one of their investments. They had no other capital gains or losses during the year. Jill received an inheritance of $75,000 from her grandmother. She also received $15,000 of life insurance proceeds from a policy on her grandmother's life. Both Tim and Jill made the maximum contribution they are allowed to make to traditional IRAs during the year. Assume these contributions are fully deductible. Tim appeared on Jeopardy during the year and won $21,800 cash. Tim and Jill had itemized deductions totaling $26,750. Required (14 points): Compute the following items for Tim and Jill. Please label the items in your calculations. a. Adjusted Gross Income (AGI) b. Taxable Income c. Income Tax d. Average Tax Rate

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