Final answer:
To find the AGI and taxable income, subtract the adjustments and exemptions from the gross income. Calculate for each option by plugging in the given values. Option 1: AGI = $15,470, Taxable Income = $14,340. Option 2: AGI = $15,470, Taxable Income = $3,070. Option 3: AGI = $3,070, Taxable Income = $15,470. Option 4: AGI = $15,470, Taxable Income = $3,070.
Step-by-step explanation:
To find the AGI (Adjusted Gross Income) and taxable income, you need to subtract the adjustments and exemptions from the gross income. In this case, the gross income is $23,670. The adjustments are 0 and the exemption is $8,200. Option 1: $12,400 to $11,270, Option 2: $23,670 to $11,270, Option 3: $11,270 to $23,670, and Option 4: $23,670 and $12,400.
Calculating:
Option 1: AGI = $23,670 - 0 - $8,200 = $15,470, Taxable Income = $15,470 - ($12,400 - $11,270) = $14,340
Option 2: AGI = $23,670 - 0 - $8,200 = $15,470, Taxable Income = $15,470 - ($23,670 - $11,270) = $3,070
Option 3: AGI = $11,270 - 0 - $8,200 = $3,070, Taxable Income = $3,070 - ($11,270 - $23,670) = $15,470
Option 4: AGI = $23,670 - 0 - $8,200 = $15,470, Taxable Income = $15,470 - $12,400 = $3,070