Solve the Problem

question 190

Multiple Choice

Solve the problem. Refer to the table if necessary.
-Carmen and James are married and filed jointly. Their combined wages were $91,109. They earned a net of $1887 from a rental property they own, and they received $1595 in interest. They
Claimed four exemptions for themselves and two children. They contributed $3701 to their
Tax-deferred retirement plans, and their itemized deductions total $9765. Find their adjusted gross
Income.

• A)$81,125
• B)$90,890
• C)$87,700
• D)$108,057

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Definitions:

Equity Method

An accounting technique used to record an investor's proportional share of the profits and losses of an equity-invested company.

Stock

Shares of ownership of a corporation.

Brokerage Commission

A fee charged by a broker for executing a transaction or providing specialized services.

Accrued Interest

Interest that has accumulated over time but has not yet been paid or received.