Mr and Mrs. Franklin, ages, 30 and 29, file a joint tax return for 2022 and have no dependents. They have the following information:
Wages $165,500
Dividend income $ 2,200
Above the line deductions $ 6,250
Itemized deductions $ 22,400
Compute their adjusted gross income (AGI)and their taxable income.
a. AGI $167,700; taxable income $145,300
b. AGI $161,450; taxable income $139,050
c. AGI $161,450; taxable income $135,550
d. AGI $173,950; taxable income $148,850