Question

In: Finance

A man earned wages of ​$33,000​, received ​$2400 in interest from a savings​ account, and contributed...

A man earned wages of ​$33,000​, received ​$2400 in interest from a savings​ account, and contributed ​$3600 to a​ tax-deferred retirement plan. He was entitled to a personal exemption of ​$2700 and had deductions totaling ​$4960. Find his gross​ income, adjusted gross​ income, and taxable income.

His gross income was $---- ​(Simplify your​ answer.)

Solutions

Expert Solution

Gross Income = Wages + Interest

                     = 33,000 + 2,400

                     = $ 35,400 Answer

Adjusted gross income = Gross income - Contribution to tax deferred retirement plan

                                  = 35,400 - 3,600

                                  = $ 31,800 Answer

Taxable Income = Adjusted Gross Income - Personal exemption - Deductions

                       = 31,800 - 2,700 - 4,960

                       = $ 24,140 Answer

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Jed earned wages of $65,000, received $840 in interest from a savings account, and contributed $2,300...
Jed earned wages of $65,000, received $840 in interest from a savings account, and contributed $2,300 to a tax-deferred retirement plan. He was entitled to a personal exemption of $3,500 and had deductions totaling $5,680. What is his gross income? What is his adjusted gross income? What is his taxable income?
What would be the annual percentage yield for a savings account that earned $69 in interest...
What would be the annual percentage yield for a savings account that earned $69 in interest on $1,000 over the past 365 days? Enter your answer as a percent rounded to 1 decimal place.
You deposit into a savings account 3 years ago, and earned interest at an annual rate...
You deposit into a savings account 3 years ago, and earned interest at an annual rate of eight percent. The deposit accumulated to 30,000. How much was initially deposited assuming that the interest was compounded a. annually b. semiannually c. quarterly
You received a high-yield savings account that contains $1,000,000. The account has a 7% annual interest...
You received a high-yield savings account that contains $1,000,000. The account has a 7% annual interest rate and you want to take out a constant amount every year for 40 years. 1. How much would you be able to withdraw every year? Hint: the annual interest rate should be used as the discount rate in the finite time annuity formula. 2. Using Microsoft Excel, decompose your annual withdrawals into interest revenue and revenue earned from principal deduction (for example, at...
A payment of $110 was made at the end of each month for 4 years into a savings account. The interest rate on the account is 5.4% compounded monthly. What’s the interested earned on the account?
A payment of $110 was made at the end of each month for 4 years into a savings account. The interest rate on the account is 5.4% compounded monthly. What’s the interested earned on the account?
In a bank​ reconciliation, interest revenue earned on a chequing account would be deducted from the...
In a bank​ reconciliation, interest revenue earned on a chequing account would be deducted from the book balance. true or false
You have just received an endowment and placed this money in a savings account at an...
You have just received an endowment and placed this money in a savings account at an annual rate of 13.58 percent. You are going to withdraw the following cash flows for the next five years. End of year 1.   $7,512 2.   $8,140 3.   $4,455 4.   $3,122 5.   $1,857 How much is the endowment that you received? Round the answer to two decimal places.
An amount of $10,000 is deposited into a savings account that pays interest at a rate...
An amount of $10,000 is deposited into a savings account that pays interest at a rate of 7%. If 10 equal annual withdrawals are made from the account starting one year after the money was deposited, how much can be withdrawn so that in the fifth year one would be able to withdraw an additional $1,000 and the account would be depleted after 10 years? Explain verbally in detail and sketch a timeline to illustrate.
Sue received dividends from various corporate stock investments of $33,000 in 2020. Of these amounts, $29,000...
Sue received dividends from various corporate stock investments of $33,000 in 2020. Of these amounts, $29,000 were marked as "qualified dividends" on her Form 1099-DIV. Regarding qualified dividends, which of the following statements is / are correct? Question 31 options: Qualified dividends are not subject to the federal income tax Qualified dividends are subject to tax, but may be deducted as a For AGI deduction on Form 1040 Qualified dividends are subject to tax, but may be deducted as a...
Suppose you open today (year 0) a savings account with $5,000; the account earns an interest...
Suppose you open today (year 0) a savings account with $5,000; the account earns an interest of 3% APR annually. At the end of year 2 you deposit an additional $5,000 in the savings account, and then at the end of year 7 you deposit another $5,000 in the account. There is a total of 3 deposits made so far. If you did not make any withdrawals or additional deposits, then approximately what is the balance (FV) in the account...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT