Amity is an employee with a period gross pay of $2,000.She elects to have 3% of her gross pay withheld for her 401(k)contribution.What will be her taxable income be for federal income taxes?
A)$2,000
B)$1,970
C)$1,940
D)$1,910

Question

Quizplus · Accepted Answer

Amity's 401(k) contribution is $60 (3% of $2,000), which is deducted from her gross pay, reducing her taxable income to $1,940.

Amity Is an Employee with a Period Gross Pay of $2,000.She