Solve the Problem

question 86

Multiple Choice

Solve the problem. Refer to the table if necessary.
-Jeff earned wages of $48,267, received $1837 in interest from a savings account, and contributed $ 3210 to a tax deferred retirement plan. He was entitled to a personal exemption of $3900 and had
Deductions totaling $7314. Find his taxable income.

• A)$60,628
• B)$43,480
• C)$53,314
• D)$35,680

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Definitions:

Sales Adjusted

The net sales figure after deductions such as returns, allowances, and discounts have been accounted for.

Cash Basis

An accounting method that recognizes revenues and expenses only when cash is exchanged.

Cash Basis

An accounting method where revenues and expenses are recorded only when cash is received or paid, regardless of when the transactions occurred.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor used in creating the good.