A earned wages of $38,500, received $2500 in interest from a savings account, and contributed $3900 to a tax-deferred retirement plan. was entitled to a personal exemption of $2500 and had deductions totaling $5260. Find gross income, adjusted gross income, and taxable income.
A earned wages of $38,500, received $2500 in interest from a savings account, and contributed $3900 to a tax-deferred retirement plan. was entitled to a personal exemption of $2500 and had deductions totaling $5260. Find gross income, adjusted gross income, and taxable income.
Chapter15: Choice Of Business Entity—other Considerations
Section: Chapter Questions
Problem 11DQ
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A earned wages of $38,500, received $2500 in interest from a savings account, and contributed $3900 to a tax-deferred retirement plan. was entitled to a personal exemption of $2500 and had deductions totaling $5260. Find gross income, adjusted gross income, and taxable income.
Expert Solution
Calculation of Gross Income
To find the gross income, we simply add up all the income sources:
Gross Income = earned wages + interest income = $38,500 + $2,500 = $41,000
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Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
A
man
earned wages of
$38,300,
received
$2000
in interest from a savings account, and contributed
$2600
to a tax-deferred retirement plan.
He
was entitled to a personal exemption of
$3100
and had deductions totaling
$5400.
Find
his
gross income, adjusted gross income, and taxable income.Solution
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