Question 1
Find the gross income, the adjusted gross income, and the taxable income.
A taxpayer earned wages of $65,100, received $840 in interest from a savings account, and contributed $2300 to a tax-deferred retirement plan. He was entitled to a personal exemption of $3500 and had deductions totaling $5680.
◦ $65,940; $63,640; $54,460
◦ $68,240; $64,740; $60,140
◦ $68,240; $64,740; $59,060
◦ $65,940; $63,640; $60,140
Question 2
Find the gross income, the adjusted gross income, and the taxable income. Base the taxable income on the greater of a standard deduction or an itemized deduction.
Suppose your friend earned wages of $93,260, received $1340 in interest from a savings account, and contributed $6300 to a tax-deferred retirement plan. She is entitled to a personal exemption of $3500 and a standard deduction of $7800. The interest on her home mortgage was $4500, she contributed $2500 to charity, and she paid $1359 in state taxes.
◦ $94,600; $88,300; $76,441
◦ $94,600; $88,300; $77,000
◦ $100,900; $97,400; $89,041
◦ $100,900; $97,400; $89,600
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