The Nurrenberns a family of three filing a joint return have the following information to prepare their federal income tax.
Use the current (2012) tax schedule for your computations. (Note: As most often the case you want to minimize the tax liability).

Salaries

$72500

Interest income corporate bonds

$1050

Interest income municipal (general purpose non-revenue) bonds

$1300

State and local income taxes2

$900

Real estate taxes2

$800

General sales taxes2

$650

Home mortgage interest

$3350

Credit card interest

$1020

Cash contributions to charities

$350

Interest on education loans

$600

Hospital and doctor expenses

$1400

Federal income taxes withheld

$7800

Compute the following:

a. Adjusted gross income

b. Taxable income

c. Tax liability

d. Tax due or tax refund

e. Marginal tax rate

f. Average tax rate

g. Average effective tax rate