When Presented with the Task of Computing Change Due from a Two-Item

question 37

Multiple Choice

When presented with the task of computing change due from a two-item restaurant bill, no more than of people in their 20's could do so correctly.

• A)one-fifth
• B)one-third
• C)one-half
• D)two-thirds

---

Definitions:

Taxable Income

Taxable income is the amount of income used to calculate how much tax an individual or a company owes to the government in a given tax year.

Standard Deduction

A fixed amount that taxpayers can subtract from their taxable income, reducing the tax they owe, without itemizing deductions.

Taxable Income

Income subject to taxation, after adjustments, deductions, and exemptions are accounted for.

Itemized Deductions

Expenses listed individually on a tax return that can be subtracted from adjusted gross income to reduce taxable income.