Question

Mike has an adjusted gross income of $85,643. He claims two exemptions and can deduct $896 for state income tax, $2,145 for charitable donations, and $3,473 for medical expenses. If the standard deduction is $5,700 and exemptions are each worth $3,650, what is Mike’s total taxable income? a. $72,643 b. $75,479 c. $71,829 d. $66,129

Answer 1

Mike's total taxable income is $71,829.

Step-by-step explanation:

To calculate Mike's total taxable income, we need to subtract his deductions and exemptions from his adjusted gross income. According to the given information, his adjusted gross income is $85,643. He claims two exemptions, which are each worth $3,650, so the total exemption amount is $7,300. He can deduct $896 for state income tax, $2,145 for charitable donations, and $3,473 for medical expenses. Thus, the total deduction amount is $6,514. Therefore, Mike's total taxable income is:

Total taxable income = adjusted gross income - (deductions + exemptions)

Total taxable income = $85,643 - ($6,514 + $7,300)

Total taxable income = $85,643 - $13,814

Total taxable income = $71,829

So, the correct answer is c. $71,829

Answer 2

The real answer is C. $71,829. Just took the engenuity test.