Final answer:
The Adjusted Gross Income (AGI) is calculated by subtracting adjustments from the gross income, resulting in $30,106. Taxable income is determined by subtracting deductions and exemptions from the AGI, totaling $15,406 in this case.
Step-by-step explanation:
Calculating Adjusted Gross Income and Taxable Income
To calculate the Adjusted Gross Income (AGI), we must start with the gross income and subtract any adjustments. Here, the gross income is $30,856, and the adjustment is $750. Hence, the AGI is $30,856 - $750 = $30,106.
Next, to find the taxable income, we subtract the sum of deductions and exemptions from the AGI. Using the provided information, the deduction is $2,300 and the exemption is $12,400. Therefore, the taxable income would be $30,106 - ($2,300 + $12,400) = $30,106 - $14,700 = $15,406.