Gross Income and Adjusted Gross Income Can Be the Same

question 104

Multiple Choice

Gross income and adjusted gross income can be the same if you do not have any special adjustments.Which of the following is not one of these special adjustments?

• A) Capital gains are deducted and capital losses are added.
• B) IRA contributions are subtracted from gross income.
• C) Interest and dividend income is part of the income calculation.
• D) Alimony payments are deducted from gross income.

---

Definitions:

Simple Interest

Interest calculated only on the principal amount of a loan or deposit, without compounding.

Note Payable

A formal written agreement to pay a specified amount of money, including interest, by a certain date, recorded as a liability on the balance sheet.

Original Principal

The initial amount of debt or loan before any interest or fees are added; it is the base amount on which interest calculations are made.

Accrued Interest

Interest earned or owed that has not yet been paid or received.