Carl and Carla are a very wealthy retired couple in their late sixties and file a joint tax return. During 2016 they had AGI of $951000, all from investments and equals their net investment income. Their only itemized deduction was a $18100 charitable contribution because they had sold their homes last year and spent all 2016 traveling around the world. (Enter your final answers without using comma separator, e.g. 5225.)
a. If they itemize, what is their taxable income for 2016 and their income tax?
Taxable income $
Income Tax $
b. How would your answers change if they claimed the standard deduction instead of itemizing?
Revised Taxable income $
Revised Income Tax $