Contemporary Mathematics for Business & Consumers 8th Edition by Robert Brechner,Geroge Bergeman

Exercise 92

Buck and Meghan Calder had combined income of $97,320 last year. For tax purposes, the Calders claim four exemptions and their filing status is married filing jointly. They contributed $5,000 to their retirement plan and had total itemized deductions of $17,200. In addition, the Calders had a tax credit for the disabled of $3,430. If their combined income tax withheld last year amounted to $10,887, calculate the following:
a. Adjusted gross income
b. Taxable income
c. Tax liability
d. Are the Calders entitled to a refund, or do they owe additional taxes How much