Question

During 2019, Enrique had the following transactions:

Salary
$70,000

Interest income on Xerox bonds
2,000

Inheritance from uncle
40,000

Contribution to traditional IRA
5,500

Capital losses
2,500

​

Enrique's AGI is:


a) $62,000.

b) $64,000.

c) $67,000.
d) $102,000.

e) $104,000

Answer 1

Enrique's adjusted gross income (AGI) can be calculated by summing his salary and interest income. The correct option is (d) $72,000.

Step-by-step explanation:

To find Enrique's adjusted gross income (AGI), we need to consider the components that make up AGI. These components include salary, interest income, inheritance, contributions to traditional IRA, and capital losses. However, not all of these components are included in AGI. Salary and interest income are included in AGI, while inheritance, contributions to traditional IRA, and capital losses are not included.

Therefore, Enrique's AGI can be calculated as:

1. AGI = Salary + Interest Income
2. AGI = $70,000 + $2,000
3. AGI = $72,000

So, the correct option is (d) $72,000.