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Suppose a single taxpayer earned wages of $52,400 and contributed $7,860 to a tax- deferred retirement plan. (a) (5 points) What is the taxpayer's gross income? (b) (5 points) What is the taxpayer's adjusted gross income?

1 Answer

1 vote

Answer:

(a) $52,400

(b) $44,540.

Explanation:

(b) $52,400 - $7,860 = $44,540

tax-deferred retirement plans like

401k

are great because

$7,860 wouldve been lost to taxes.

instead it goes to retirement

User Tywana
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