Answered

Kevin, while calculating his tax adjustments, notes that he can make adjustments of $3,435 for contributions to his retirement plan, $3,393 for business losses, and $1,128 for business expenses. If Kevin’s gross income is $45,942, what is his adjusted gross income?

A$53,898
B$40,242
C$41,421
D$37,986

Verified Answer :

MissPhiladelphia

Gross income is An
individual's total personal income, before accounting for taxes or deductions.
so the adjusted gross income can be calculated using

AGI = GI – D

Where AGI is the adjusted gross income

GI is the gross income

D are the deductions

AGI = 45942 – ( 3435 + 3393 + 1128 )

AGI = $ 37,896  

Answer: Option 'D' is correct.

Step-by-step explanation:

Since we have given that

Amount of Kevin's gross income = $45942

Amount he contribute to his retirement plan = $3435

Amount he lost in business losses = $3393

Amount he incurred in business expenses = $1128

So, His adjusted gross income will be

\(45942-(3435+3393+1128)\\\\=45942-(7956)\\\\=\$37986\)

Hence, his adjusted gross income is $37,986.

Hence, Option 'D' is correct.

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