Question

Gross income includes all of the following except

a. capital gains realized.
b. interest or dividends received.
c. salary or wages.
d. employer's current contribution to 401(k).

Answer 1

d. employer's current contribution to 401(k).

Step-by-step explanation:

Gross income -

Gross income is different for an individual and different for a business .

Hence , for an individual , It is the total pay of an individual excluding the tax deductions .

It includes all the source of income .

For business or companies , It is the gross income , as given in the income statement . It is also called the gross margin or gross profit .

Hence , the incorrect statement is ( d ) .