Question

A man earned wages of ​$52 comma 800​, received ​$2200 in interest from a savings​ account, and contributed ​$4000 to a​ tax-deferred retirement plan. He was entitled to a personal exemption of ​$3800 and had deductions totaling ​$7020. Find his gross​ income, adjusted gross​ income, and taxable income.

Answer 1

gross​ income:$55000

adjusted gross​ income: $51000

taxable income: $40180

Step-by-step explanation:

Given:

• Wage: ​$52 comma 800 = $52800
• Interest received: $2200
• tax-deferred retirement: $4000
• Personal exemption : ​$3800
• Deductions totaling: $7020

As we know that,

• Gross income = Wage + interest received

= $52800 + $2200

= $55000

• Adjusted gross​ income = gross​ income - adjustment

= $55000 - $4000

= $51000

• taxable income = Adjusted gross income - (Exemption + Deductions )

= $51000 - ($3800 + $7020)

= $40180

Hope it will find you well