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?
A)$76,000.
B)$77,000.
C)$78,000.
D)$89,000.
E)None of the above.

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?
A)$76,000. 
B)$77,000. 
C)$78,000. 
D)$89,000. 
E)None of the above.

Quizplus · Accepted Answer

AGI (Adjusted Gross Income) is calculated by subtracting any adjustments (such as contributions to retirement accounts) from gross income. In this case, the only information given is David's salary income of $80,000 and the property transactions. However, there are not enough details about the property transactions to determine if they would result in any adjustments to his gross income.

Therefore, we can assume that David's AGI is simply his gross income of $80,000. However, since that answer is not one of the choices, we must pick the closest option, which is C, $78,000.

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