Solve the problem. Refer to the table if necessary.
-Jenny earned wages of $99,016, received $5325 in interest from a savings account, and contributed $ 5935 to a tax deferred retirement plan. She was entitled to a personal exemption of $3900 and had
Deductions totaling $8971. Find her taxable income.

Question

Solve the problem. Refer to the table if necessary. 
-Jenny earned wages of $99,016, received $5325 in interest from a savings account, and contributed $ 5935 to a tax deferred retirement plan. She was entitled to a personal exemption of $3900 and had
Deductions totaling $8971. Find her taxable income.

Quizplus · Accepted Answer

Jenny's taxable income is calculated by subtracting her personal exemption, deductions, and retirement plan contribution from her total income (wages + interest). Total income = $99,016 (wages) + $5,325 (interest) = $104,341. Taxable income = $104,341 - $5,935 (retirement plan) - $3,900 (personal exemption) - $8,971 (deductions) = $85,535.

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