Question

A man earned wages of ​$53 comma 300​, received ​$1900 in interest from a savings​ account, and contributed ​$3200 to a​ tax-deferred retirement plan. He was entitled to a personal exemption of ​$2900 and had deductions totaling ​$5220. Find his gross​ income, adjusted gross​ income, and taxable income.

Answer 1

Gross income = $55,200

Adjusted gross​ income = $52,000

Taxable income = $43,880

Step-by-step explanation:

Given:

Wages earned = $53,300

Interest received = $1,900

Tax-deferred retirement plan = $3,200

Personal exemption = ​$2,900

Deductions totaling = ​$5,220

Now,

Gross income = Wages earned + Interest received

= $53,300 + $1,900

= $55,200

Adjusted gross​ income = Gross income - Adjustments

= $55,200 - $3,200

= $52,000

Taxable income = Adjusted gross​ income - (Exemption + Deductions )

= $52,000 - ( $2,900 + $5,220 )

= $43,880