A man earned wages of $36,300, received $2200 in interest from a savings account, and contributed $2700 to a tax-deferred retirement plan. He was entitled to a personal exemption of $4050 and a standard deduction of S6300. The interest on his home mortgage was $7800, he contributed $2900 to charity, and he paid $1750 in

state taxes. Find his gross income, adjusted gross income, and taxable income Base the taxable income on the greater of a standard deduction or an itemized

deduction

Answer :

mickymike92

Answer:

Gross income = $38500

Adjusted gross income = $35800

Taxable income = $13000

Step-by-step explanation:

1. Gross income = wages + interest received

Gross income = $36,300 + $2200

Gross income = $38500

2. Adjusted gross income = Gross income - adjustments

Adjusted gross income = $38500 - $2700

Adjusted gross income = $35800

3. Taxable income = adjusted income - (exemption + deductions)

Taxable income = $35800 - ($4050 + $6300 + $7800 + $2900 + $1750)

Taxable income = $35800 - $22800

Taxable income = $13000

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