Contemporary Mathematics for Business & Consumers 8th Edition by Robert Brechner,Geroge Bergeman

Exercise 91

Nancy Sullivan sells wholesale school supplies for Sharpie Corporation. She is single, claiming three exemptions. For income tax purposes, she qualifies as a head of household. Last year she earned a total of $54,300 in salary and commission. She contributed $2,500 to her retirement plan and had the following itemized deductions: SI,231 in real estate taxes, $3,450 in mortgage interest, $2,000 in mortgage loan closing points, $420 in charitable contributions, and $3,392 in unreimbursed job expenses above the 2% adjusted gross income exclusion. From this informa­tion, calculate Nancy's taxable income.