Question

Rebecca’s gross income is $101,640. She takes $20,290 in deductions. What is Rebecca’s taxable income?

a) $81,350
b) $81,640
c) $101,640
d) $20,290

Answer 1

In this case, Rebecca's gross income is $101,640 and her deductions are $20,290. Subtracting the deductions from the gross income, we get $101,640 - $20,290 = $81,350. Therefore, Rebecca's taxable income is $81,350.

Step-by-step explanation:

Rebecca’s taxable income is calculated by subtracting her deductions from her gross income. If Rebecca’s gross income is $101,640 and she takes $20,290 in deductions, we subtract the deductions from the gross income to find the taxable income:

$101,640 - $20,290 = $81,350

Therefore, Rebecca’s taxable income would be $81,350, which corresponds to option (a).