Question

.Dorothy Fonda is an unmarried head of household with the following income for the year: Wages $34,500 Bank interest $275 Municipal bond interest $115 Lottery prize $325 Gift from her father $5,000 Dorothy contributed $1,250 to her traditional IRA, which she will deduct. Compute her AGI.

$33,250.00

$33,575.00

$33,850.00

$33,965.00

Answer 1

Your correct answer is C $33,850.00

Step-by-step explanation:

Wages + bank interest + lottery price - standard deduction

= $34,500 + $275 + $325 - $1,250

= $33,850

Answer 2

$33,850.00

Step-by-step explanation:

The computation of the Adjusted gross income (AGI) is shown below:

= Wages + bank interest + lottery price - standard deduction

= $34,500 + $275 + $325 - $1,250

= $33,850

The standard deduction is a contribution to her traditional IRA. All other items which are given in the question are not relevant. Hence, we ignored it