Mr and Mrs Compute Their Adjusted Gross Income (AGI) and Taxable Income

question 68

Multiple Choice

Mr. and Mrs. Liddy, ages 39 and 41, file a joint return and have no dependents for the year. Here is their relevant information: Standard Deduction Table. $\begin{array}{llr} \text {Salaries } &\$47,000\\ \text { Taxable interest income } &5,000\\ \text {Above-the-line deductions } &1,800\\ \text { Itemized deductions } &16,250\\\end{array}$
Compute their adjusted gross income (AGI) and taxable income.

• A) AGI $50,200; taxable income $25,400.
• B) AGI $52,000; taxable income $35,750.
• C) AGI $52,000; taxable income $33,550.
• D) AGI $50,200; taxable income $9,150.

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Definitions:

Automatically Encode

The unconscious process of converting experiences and new information into memory without deliberate effort.

Sequence

An ordered list of events, objects, or numbers arranged in a specific or logical order.

Day's Events

The various occurrences, tasks, or activities that take place within the duration of a 24-hour period.

Automatic Processing

The subconscious aspect of cognition that involves non-conscious tasks, such as walking, which do not require active thinking or attention.