A man earned wages of $54,400, received $1200 in interest from a savings account, and contributed $3500 to a tax-deferred retirement plan. He was entitled to a personal exemption of $3800 and a standard deduction of $5950. The interest on his home mortgage was $8400, he contributed $2700 to charity, and he paid $1250 in state taxes. Find his gross income, adjusted gross income, and taxable income. Base the taxable income on the greater of a standard deduction or an itemized deduction. His gross income is $ (Simplify your answer.) His adjusted gross income is $ (Simplify your answer.) His taxable income is $ (Simplify your answer.)
A man earned wages of $54,400, received $1200 in interest from a savings account, and contributed $3500 to a tax-deferred retirement plan. He was entitled to a personal exemption of $3800 and a standard deduction of $5950. The interest on his home mortgage was $8400, he contributed $2700 to charity, and he paid $1250 in state taxes. Find his gross income, adjusted gross income, and taxable income. Base the taxable income on the greater of a standard deduction or an itemized deduction. His gross income is $ (Simplify your answer.) His adjusted gross income is $ (Simplify your answer.) His taxable income is $ (Simplify your answer.)
Chapter12: Alternative Minimum Tax
Section: Chapter Questions
Problem 41P
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Transcribed Image Text:A man earned wages of $54,400, received $1200 in interest from a savings account, and contributed $3500 to a
tax-deferred retirement plan. He was entitled to a personal exemption of $3800 and a standard deduction of $5950. The
interest on his home mortgage was $8400, he contributed $2700 to charity, and he paid $1250 in state taxes. Find his
gross income, adjusted gross income, and taxable income. Base the taxable income on the greater of a standard
deduction or an itemized deduction.
His gross income is $
(Simplify your answer.)
His adjusted gross income is $
(Simplify your answer.)
His taxable income is $
(Simplify your answer.)
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