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 $93,950, received $1,310 in interest from a savings account, and contributed $6,500 to a tax-deferred retirement plan. She is entitled to a personal exemption of $4050 and a standard deduction of $6,300. The interest on her home mortgage was $4,700, she contributed $2,300 to charity, and she paid $1,375 in state taxes. A) $95,260; $88,760; $78,410 C) $101,760; $97,710; $91,410 B) $101,760; $97,710; $89,335 D) $95,260; $88,760; $76,335
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 $93,950, received $1,310 in interest from a savings account, and contributed $6,500 to a tax-deferred retirement plan. She is entitled to a personal exemption of $4050 and a standard deduction of $6,300. The interest on her home mortgage was $4,700, she contributed $2,300 to charity, and she paid $1,375 in state taxes. A) $95,260; $88,760; $78,410 C) $101,760; $97,710; $91,410 B) $101,760; $97,710; $89,335 D) $95,260; $88,760; $76,335
Chapter8: Taxation Of Individuals
Section: Chapter Questions
Problem 26P
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Transcribed Image Text: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 $93,950, received $1,310 in interest from a
savings account, and contributed $6,500 to a tax-deferred retirement plan. She is
entitled to a personal exemption of $4050 and a standard deduction of $6,300. The
interest on her home mortgage was $4,700, she contributed $2,300 to charity, and she
paid $1,375 in state taxes.
A) $95,260; $88,760; $78,410
C) $101,760; $97,710; $91,410
B) $101,760; $97,710; $89,335
D) $95,260; $88,760; $76,335
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