Randy and Sharon Are Married and Have Two Dependent Children

Randy and Sharon are married and have two dependent children. Their 2016 tax and other related information is as follows:
$\begin{array}{|l|r|}\hline\text { Total salaries } & \$ 160,000 \\\hline \text { Bank account interest income } & 3,500 \\\hline \text { Municipal bond interest income } & 1,500 \\\hline \text { Value of employer provided medical insurance } & 12,500 \\\hline \text { Employer paid premiums for } \$ 50,000 \text { of group term life instrance } & 5,500 \\\hline \text { Dividend income from ABC stock } & 2,000 \\\hline \text { Loan from Randy's parents } & 5,000 \\\hline \text { Gift from Randy's parents } & 15,000 \\\hline \text { Gain from the sale of qualified small business stock acquired in 2006 } & 18,000 \\\hline \text { Total itemized deductions } & 17,000\\\hline\end{array}$ Compute Randy and Sharon's taxable income. (Show all calculations in good form.)