Sarah and Tim are​ married, have four dependent​ children, and file a joint return in 2016. If they have adjusted gross income​ (AGI) of $80,000 and itemized deductions of $8,500​, what is their taxable income for 2016​?

(The following are the​ scenarios.)

Which of the following individuals is most likely to be​ audited?











The primary objective of the federal income tax law is to raise revenue. What are its secondary​ objectives?




Distinguish between taxpaying entities and ​flow-through entities from the standpoint of the federal income tax law.




Is the principal goal of tax planning to absolutely minimize the amount of taxes that a taxpayer must​ pay?


Explain how a computer can assist a tax practitioner in tax planning activities and making complex tax calculations.

Sarah and Tim are​ married, have four dependent​ children, and file a joint return in 2016. If they have adjusted gross income​ (AGI) of $80,000 and itemized deductions of $8,500​, what is their taxable income for 2016​?