Kevin Is a Single Person Who Earns $70,000 in Salary

question 109

Essay

Kevin is a single person who earns $70,000 in salary for 2014 and has other income from a variety of investments, as follows:
Kevin received tax refunds when he filed his 2013 tax returns in April of 2014. His federal refund was $600 and his state refund was $300. Kevin claimed the $300 state tax overpayment as an itemized deduction on his 2013 return. Due to changes in circumstances, Kevin is not itemizing deductions on his 2014 return.
Compute Kevin's taxable income for 2014.

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Definitions:

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can purchase at given prices within his or her income.

Indifference Map

A graphical representation of combinations of goods between which a consumer is indifferent, showing preferences and trade-offs.

Budget Constraint

A representation of all the combinations of goods and services that a consumer can afford given their income and the prices of goods.

Price of Apples

The amount of money required to purchase a unit or specific quantity of apples, often influenced by factors such as supply, demand, and production costs.