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.

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Giovanni

3 August, 19:13

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.

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William Peck · Answer 1

gross income:$55000

adjusted gross income: $51000

taxable income: $40180

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