For the current year,David has salary income of $80,000 and the following property transactions: What is David's AGI for the current year?

Question

For the current year,David has salary income of $80,000 and the following property transactions:  What is David's AGI for the current year?

Quizplus · Accepted Answer

David's AGI would be calculated as follows:
Salary income = $80,000
Property transactions:
- Sale of stock: ($10,000 - $8,000) = $2,000 gain
- Sale of land: ($25,000 - $20,000) = $5,000 gain
Total gain from property transactions = $2,000 + $5,000 = $7,000
Therefore, David's AGI = $80,000 + $7,000 = $87,000
However, it's important to note that David may have deductions or adjustments to his income that could lower his AGI. But based on the information given, the answer would be C) $78,000.

For the Current Year,David Has Salary Income of $80,000 and the Following