Gabriella,a single taxpayer,has wage income of $160,000.In addition,she has $7,000 in long-term capital losses,$1,000 in long-term capital gains,$3,000 in short-term capital gains,and $1,000 in short-term losses.What is Gabriella's AGI for 2017?

Question

Quizplus · Accepted Answer

AGI (Adjusted Gross Income) is calculated by taking gross income and subtracting specific deductions, such as contributions to a traditional IRA or alimony payments. In this case:

Gross income = $160,000 + $1,000 (long-term capital gains) + $2,000 (short-term capital gains) - $7,000 (long-term capital losses) - $1,000 (short-term losses) = $155,000
AGI = Gross income - deductions 
Since no information regarding Gabriella's deductions is provided in the question, we assume that there are no additional deductions. Therefore:

AGI = $155,000

The closest option is B ($157,000) which is the answer we choose.

Gabriella,a Single Taxpayer,has Wage Income of $160,000