Response to the following problem:
Jim and Pat are MFJ. In 2012 Jim earned $46,000. Pat is self-employed. Her gross business income was $49,000 and her business expense was $24,000. Each contributed $5000 to a deductible IRA. Itemized deductions were $13,000.
a. compute gross income
b. compute adjusted gross income
c. compute taxable income assuming hey have a dependent daughter.