---### Tax Calculation Example**You determined the following tax information for yourself:**- **Gross Salary:** $160,000- **Interest Earned:** $2,000- **IRA Contribution:** $5,000- **Standard Deduction:** $12,400**Filing Status:** Single**Objective:** Calculate your taxable income and tax liability.**Steps:**1. **Calculate Total Income:** - **Gross Salary + Interest Earned = Total Income** - $160,000 + $2,000 = $162,0002. **Determine Adjustments:** - **Subtract IRA Contribution from Total Income.** - $162,000 - $5,000 = $157,0003. **Apply Standard Deduction:** - **Subtract Standard Deduction from adjusted income.** - $157,000 - $12,400 = $144,600**Result:**- **Taxable Income:** $144,600**Note:** The tax liability will depend on the tax rates applicable to your taxable income bracket.---

Taxable income The income on which tax is levied is referred to as taxable income. It contains some…

Answered: for yourself: Gross Salary: $160,000…

Business

Accounting

for yourself: Gross Salary: $160,000 Interest Earned: $2,000 IRA Contribution: $5,000 Standard Deduction: $12,400

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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