Solution:
The given information Regarding Person Income and expenditure is
Gross Income $55,555
Adjustments $15002
Exemptions $16,400
Deduction $1854
AG I = Adjustable Gross income =Total income[ Gross Income+Exemption] - [Adjustment + Deduction]
= 55,555 +16,400 - [15002+1854]
= 71,955 - 16,856
= $ 55099
Taxable income =Total Income that is shown for paying tax
= $ 55,555 + Exemption
= $ 55,555 + $ 16,400
= $71,955