Based on the Following Information,what Is the 2013 Taxable Income

question 73

Multiple Choice

Based on the following information,what is the 2013 taxable income for a married couple with two children?
$$\begin{array} { l r } \text { Total income } & \$ 120,000 \\\text { Excludable income } & 2,000 \\\text { Deductions for AGI } & 5,000 \\\text { Allowable itemized deductions } & 8,000\end{array}$$

• A)$ 84,800
• B)$ 85,200
• C)$ 86,700
• D)$ 89,800
• E)$ 90,900

---

Definitions:

Price Signalling

A mechanism where the price of a good or service provides information to buyers and sellers which influences their decisions.

Cartels

An association of independent firms or countries that agree to coordinate their production and pricing decisions to monopolize a market and maximize collective profits.

Collusive Agreement

A secret or illegal cooperation or conspiracy, especially between competitors, aimed at deceiving or gaining an unfair advantage in the market.

Dominant Firm

A company that has a major share of the market for a particular product or service, often able to influence market conditions.