Lucky Louie earned a salary of $100,000 this year and interest income of $3,000. Louie, was not so lucky in the stock market however and had capital losses of $3,000. What was Lucky Louie's taxable income, assuming Louie takes the standard $12,000 deduction?
A) $88,000
B) $81,000
C) $89,000
D) $90,000

Question

Quizplus · Accepted Answer

Taxable income = Salary + Interest income - Capital losses - Standard deduction= $100,000 + $3,000 - $3,000 - $12,000= $88,000

Lucky Louie Earned a Salary of $100,000 This Year and Interest