Mr. and Mrs. Philips recognized the following capital gains and losses this year. Their AGI before consideration of these gains and losses was $140,000. Compute their AGI.

Question

Mr. and Mrs. Philips recognized the following capital gains and losses this year.  Their AGI before consideration of these gains and losses was $140,000. Compute their AGI.

Quizplus · Accepted Answer

The question does not provide the exact amount of the capital gains and losses, but since their AGI before consideration of these gains and losses was $140,000, we can assume that their AGI would change after recognizing them. The answer would be their original AGI plus any gains or minus any losses. Therefore, AGI = $140,000 + (capital gains) - (capital losses). Since we do not have any information on the amount of gains and losses, we cannot compute the exact AGI. However, option C seems most reasonable as it is close to their original AGI and recognizes some gains and/or losses.

Mr and Mrs