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Required information The following information applies to the questions displayed below Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents (Damarcus, Janine, Michael, and Candice) The couple received salary income of $115,000, qualified business income of $11,500 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $207,500 and they sold it for $257500. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $16,800 of itemized deductions, and they had $3,700 withheld from their paychecks for federal taxes. They are also allowed to claim a child tax credit for each of their children. However, because Candice is 18 years of age, the Jacksons may claim a child tax credit for other qualifying dependents for Candice. (Use the a. What is the Jacksons' taxable income, and what is their tax liability or (refund)? (Do not round intermediate calculation. Round Income tax liability", "Total tox", "Taxes payable or Refund due" to 2 decimal places.) nces Description Amount (1) Gross income (2) For AGI deductions S 197.000 (3) Adjusted gross income (4) Standard deduction (5) Itemized deductions (6) Lesser of standard deductions or itemized deductions 7) Deduction for qualified business income (8) Total deductions from AG (9) Taxable income (10) Income tax lability (11) Other taxes (12) Total tax (13) Credts S 197.000 16.800 11,500 78.300 118,700 26 26.114.00 (14) Prepayments axes payable 3,700 $26 11400

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