Comprehensive tax return problem:
Car chubbs, age 64, earned $55,000 during 2016. His wife, Dawn, age 66, is blind. During 2016, carl and dawn received $1,000 in dividends. They sold their personal use automobile which they had owned for two years (adjusted basis of $18,500) for $19,000. They sold to their son 50 shares of riverdale corp. stock for $500. Their basis was $12 per share; fair market value was $20 per share. Carl and Dawn sold property carl had inherited from his sister for $12,500. At the time of carls sister's death the basis of the property was $7,500 and the fair market value was $10,000; six months after death the fair market value was $9,000. the alternate valuation date was elected by the executor in valuation of the estate of carls sister. In addition carl and dawn paid $8,500 interest on their home, made a cash contribution to their college alumni foundation in teh amount of $5,000, paid state income taxes of $2,500, paid federal income taxes of $8,000, and had medical expenses of $800. compute carl and dawns taxable income. treat all income as ordinary income.