Sally's Total Income Is $38 000 and She Divorced Last

question 67

Multiple Choice

Sally's total income is $38 000 and she divorced last year.She does not own a home,but has charitable contributions of $1500 and interest on her car of $2100.This year she also paid spousal support of $2000,child support of $5000,and tuition of $2600.Her basic personal amount is $11 138.What is Sally's taxable income?

• A)$34 500
• B)$31 900
• C)$36 000
• D)$20 762

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Definitions:

External Financing Need

The requirement for funds that a company must fulfill through external sources, like equity or debt, to finance its operations beyond what it can fund through its internal cash flow.

Full Capacity

The maximum level of output that a company can sustain over a long period without increasing its fixed costs.

Capital Intensity Ratio

A financial metric that measures the amount of capital needed per unit of output or the capital required to generate a dollar of revenue.

Operating Capacity

The maximum output that a company can produce under normal conditions.