Question

Slaton served 10 days on jury duty in 2016, for which Slaton was paid $25 per day by the county. Slaton's employer does not require employees to remit to it all pay received by the county during jury duty even though Slaton's employer pays employees their normal compensation for the duration of jury duty. Slaton's W-2 income for 2016 is $40,000. What should Slaton's adjusted gross income be for 2016?

A.$40,250
B.$39,750
C.None of the other choices are correct.
D.$40,125
E.$40,000

Answer 1

Slaton's adjusted gross income for 2016 is the sum of the W-2 reported income and the jury duty pay, amounting to $40,250.

Step-by-step explanation:

If Slaton was paid $25 per day for 10 days of jury duty in 2016, Slaton earned $250 ($25 x 10) from the county for this service. Since Slaton's employer did not require this money to be repaid due to the employer providing normal compensation during the jury duty period, the jury duty pay would be added to Slaton's total income for the year. Given that Slaton's W-2 income is $40,000, we simply add the jury duty pay to this amount to calculate the adjusted gross income.

Therefore, Slaton's adjusted gross income for 2016 would be $40,000 (from the W-2) plus $250 (jury duty pay), giving us a total of $40,250.