Question

A part-time shipping clerk made $12,122.46 last year. If he claimed himself as an exemption for $3,650 and had a $5,700 standard deduction, what was his taxable income last year?

a) $2,772.46

b) $5,772.46

c) $9,772.46

d) $12,122.46

Answer 1

To calculate the part-time shipping clerk's taxable income, subtract the exemption and the standard deduction from the gross annual income, resulting in a taxable income of $2,772.46.

Step-by-step explanation:

Calculating Taxable Income

To calculate the taxable income for the part-time shipping clerk, we start with the gross annual income of $12,122.46. From this amount, we subtract both the exemption of $3,650 and the standard deduction of $5,700 to determine the taxable income.

The calculation therefore is as follows:

Taxable Income = Gross Annual Income - (Exemption + Standard Deduction)

Taxable Income = $12,122.46 - ($3,650 + $5,700)

Taxable Income = $12,122.46 - $9,350

Taxable Income = $2,772.46

Therefore, the taxable income of the part-time shipping clerk last year was $2,772.46, which corresponds to option (a).