During 2013,Sarah had the following transactions: Sarah's AGI is:
A)$185,000.
B)$187,000.
C)$285,000.
D)$287,000.
E)$387,000.

Question

During 2013,Sarah had the following transactions:  Sarah's AGI is:
A)$185,000. 
B)$187,000. 
C)$285,000. 
D)$287,000. 
E)$387,000.

Quizplus · Accepted Answer

- Sarah's salary (W-2) is $200,000
- Sarah had interest income of $5,000 (1099-INT)
- Sarah had dividend income of $10,000 (1099-DIV)
- Sarah had capital gains of $70,000 (1099-B)
- Sarah made a deductible IRA contribution of $5,500
- Sarah paid alimony of $7,000
- Sarah made a charitable contribution of $500

Sarah's AGI is calculated as follows:
AGI = Salary+Wages + Interest Income + Dividend Income + Capital Gains - Deductible IRA contribution - Alimony paid - Charitable Contributions
AGI = $200,000 + $5,000 + $10,000 + $70,000 - $5,500 - $7,000 - $500
AGI = $287,000. Therefore, the best choice is D.

During 2013,Sarah Had the Following Transactions: Sarah's AGI Is