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Kadeisha Is Single with No Dependents and Has a Salary

question 116

Essay

Kadeisha is single with no dependents and has a salary of $102,000 for 2016,along with tax exempt interest income of $3,000 from a municipality.Her itemized deductions total $6,100.
Required: Compute her taxable income.


Definitions:

Net Income

Net income is the total earnings of a company after all expenses and taxes have been deducted from total revenue, indicating the company's profit.

Inventory

Goods and materials that a business holds for the ultimate goal of resale or processing.

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product cost determination.

Operating Expenses

Recurring expenses related to the core operations of a business, excluding the cost of goods sold, such as rent, utilities, and salaries.

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