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 states that the Philips recognized capital gains and losses, but it does not provide the amounts of these gains and losses. Without this information, it is impossible to accurately calculate their AGI. Therefore, we must assume that the gains and losses do not affect their AGI. As a result, their AGI would be $140,000, as stated in the question. Choice C ($137,000) is the closest answer option, but it is not accurate based on the information provided in the question.

Mr and Mrs