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Comprehensive Problem (TAX RETURN PROBLEM) Barry and Connie, Husband and wife, are both age 24, and...

Comprehensive Problem (TAX RETURN PROBLEM)

Barry and Connie, Husband and wife, are both age 24, and have two sons. Barry earned $51,000 and Connie earned $45,000 during 2020. They both paid $4,200 state income taxes, $12,000 federal income taxes, $5,500 property taxes, $14,600 to First Presbyterian Church, $600 to needy families, $6,400 interest on their mortgage, and $6,800 medical expenses. In addition, they had the following transaction:

a) They sold their personal residence for $170,000. Their basis in the residence was $104,000. They incurred $7,000 in selling expenses. They purchases a new residence six months later for $220,000.

b) Connie sold for $40,000 property she had inherited from her father in 2015. Her father's basis in the property was $15,000 and the fair market value on the date of death was $30,000.

c) They sold for $6,000 business property which they had acquired as a gift in 2017. The basis to the donor was $7,500 and the fair market value on the date of the gift was $7,000.

d) they exchanged 100 shares of Conway Corp. common stock, with a basis of $3,000, for 75 shares of Conway Corp. nonvoting common stock with a fair market value of 10,0000.

Determine Barry and Connie's lowest taxable income. Treat all income as ordinary income.

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