During 2012, Marvin had the following transactions: Marvin's AGI is:
A)$32,000.
B)$38,000.
C)$44,000.
D)$56,000.
E)$64,000.

Question

During 2012, Marvin had the following transactions:  Marvin's AGI is:
A)$32,000. 
B)$38,000. 
C)$44,000. 
D)$56,000. 
E)$64,000.

Quizplus · Accepted Answer

To determine Marvin's AGI, we need to add up all his income sources and subtract any allowable deductions.

Marvin's income sources: 
- Wages: $26,000 
- Interest income: $1,000 
- Dividend income: $2,000 
- Rental income: $10,000

Marvin's deductions: 
- Educator expenses: $250 
- Retirement contribution: $2,000 
- Self-employment tax deduction: $465

Adding up Marvin's income and subtracting his deductions, we get: 
$26,000 + $1,000 + $2,000 + $10,000 - $250 - $2,000 - $465 = $36,285

Therefore, the best choice is C, $44,000.

During 2012, Marvin Had the Following Transactions: Marvin's AGI