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Bruce and Anna Wayne3 children living at home under the age of 17$78,000 gross annual combined salaries$2,000 invested in Bruce's IRA during the year$580 in a savings account interest$400 in dividends from Bats Inc300 shares of stock sold for $27 per share on July 2, this year(plus a $50 brokeragecommission). The stock was purchased for $10 per share 1year ago (plus a$50 brokerage commission).$4,300 in medical expenses$9,000 in home mortgage interest$3,000 given to charity$2,500 paid in state income taxes$1750 paid in local property taxes$7,460 Federal Income tax withheld during the yearWhat is the Wayne's gross income?$83,980$78,980$87,030$83,000Flag this QuestionQuestion 2What is their adjusted gross income?$81,980$76,980$81,000$83,980Question 3Will the Wayne's itemize or take thestandard deduction? If so, show the correct amount for whicheverone they choose.They will choose the itemized deduction of $16,250 as it ishigher than the standard deduction of $12,700.They will choose the itemized deduction of $20,550 as it ishigher than the standard deduction of $12,700.They will choose the standard deduction of $12,700 as it ishigher than the itemized deduction of $8,198.They will choose the itemized deduction of $18,099 as it ishigher than the standard deduction of $12,700.Question 4What is their taxable income (onordinary income), and how much total Federal income tax do they owe(via ordinary and investment invome)? (Remember to take the capitalgains and dividends out, calculate taxes owed, and then tax them atthe applicable rate and add the tax due to that due on ordinaryincome.)Their taxable income is $40,080 and they owe $5,079.50 infederal income taxes.Their taxable income is $45,980 and they owe $6,940 in federalincome taxes.Their taxable income is $49,330 and they owe $6,190 in federalincome taxes.Their taxable income is $42,830 and they owe $5,920 in federalincome taxes.Question 5Do they still owe the government money or will they receive arefund? If so, how much do they owe?They owe the government $4,473.50They receive a refund of $5,380.50They do not owe the government money nor will they receive arefund.They will receive a refund of $1,270.50.Please include how you got the answer, so that I may understandthis better. Thank you