A New Family Calculates Income and Tax Liability Kate Beckett and her two children, Austin and Alexandra, moved into the home of her new husband, Richard Castle, in New York City. Kate is a novelist, and her husband is a police detective. The family income consists of the following: $60,000 from Kate’s book royalties; $90,000 from Richard’s salary; $10,000 in life insurance proceeds from a deceased aunt; $140 in interest from savings; $4,380 in alimony from Kate’s ex-husband; $14,200 in child support from her ex-husband; $500 cash as a Christmas gift from Richard’s parents; and a $1,600 tuition-and-books scholarship Kate received to go to college part time last year.
(a) What is the total of their reportable gross income?
(b) After Richard put $5,600 into qualified retirement plan accounts last year, what is their adjusted gross income?