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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 2 years ago
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