Sean and Martha Are Both Over Age 65 and Martha

question 46

Essay

Sean and Martha are both over age 65 and Martha is considered blind by tax law standards.Their total income in 2016 from part-time jobs and interest income from a bank savings account is $60,000.Their itemized deductions are $12,000.
Required: Compute their taxable income.

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Definitions:

Coefficient

A numerical constant placed at the beginning and serving as a multiplier to a variable in an algebraic formula.

Nominal Variables

Variables that represent categories without any inherent order or ranking among them.

Interaction Term

A variable in statistical models that captures the effect of two or more variables simultaneously affecting a response variable.

Significance Level

The probability of inappropriately disapproving the null hypothesis in a study of statistics, generally labelled as alpha.