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Using the income tax formula found in this module and all previous modules, calculate gross income, adjusted gross income, and taxable income based upon the fact below. Be sure to show your work for maximum points.

In $2023,$ Brian and Emmy are married. Emmy earns $$50,000$ from her job as a personal assistant. Brian earns $$75,000$ per year as a micro$-$biologist.

Brian owns a $10\%$ interest in Alpha Partnership. Alpha earned $$100,000$ in operating income during the year, it also paid a cash distribution of $$20,000$ to Brian during the year.

Brian went gambling with some buddies and won $$1,500$ cash. Emmy went gambling and lost $$3,000.$ Brian also won a Rolex watch from an online costume contest. The fair market value of the watch was $$7,500.$

Emmy has $$1,000$ of interest from Municipal City Bonds. She also has $$3,000$ of interest from Big Corporation Capital company.

They also have the following expenses during the year:

Medical Expenses: $$13,500$

State & Local Taxes: $$14,500$

Real Estate Taxes $$4,700$

Federal Income Tax Payments: $$10,000$

Cash Charitable Contributions: $$15,000$

Mortgage Interest $$7,500$

Mortgage Principle $$20,000$

The standard deduction amounts for $2023$ are listed below:

Single: $$13,850$

Head of Household: $$20,800$

Married Filing Jointly: $$27,700$

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