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Ross Martin arrived at the following tax information: Tax Information
Gross salary $ 58,755
Interest earnings 295
Dividend income 245
Standard deduction 12,000
Itemized deductions 11, 430
Adjustments to income 2,100
What amount would Ross report as taxable income?

Respuesta :

Answer:

$45,195

Explanation:

The computation of the taxable income is shown below;

But before that following calculations need to be done

Gross income is

= Gross salary + Dividend income + Interest income

= $58,755 + $245 + $295

= $59,295

Now  

Adjusted gross income = Gross income - Adjustments to income

= $59,295 - $2,100

= $57,195

And, finally  

Taxable income = Adjusted gross income - ( standard deduction or itemized deduction i.e. higher amount  

So,  

Taxable income = $57,195 - $12,000

= $45,195

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