Anna receives a salary of $42,000 during the current year. She sells some land that she held as an investment at a loss of $7,000 and some stock at a gain of $11,000. Anna's adjusted gross income is:

Question

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Anna's adjusted gross income includes her salary of $42,000 and the capital gain from selling stock of $11,000. The loss from selling the land cannot be deducted from her salary, but it can offset the capital gains, resulting in a net capital gain of $4,000 ($11,000 - $7,000). Therefore, her adjusted gross income is $42,000 (salary) + $4,000 (net capital gain) = $46,000.

Anna Receives a Salary of $42,000 During the Current Year