Al is single, age 60, and has gross income of $140,000. His deductible expenses are as follows:
What is Al's AGI?
A) $94,100.
B) $103,000.
C) $107,000.
D) $127,000.
E) None of the above.

Question

Al is single, age 60, and has gross income of $140,000. His deductible expenses are as follows: 
What is Al's AGI?
A) $94,100. 
B) $103,000. 
C) $107,000. 
D) $127,000. 
E) None of the above.

Quizplus · Accepted Answer

Al's AGI is calculated by subtracting his deductible expenses from his gross income. Therefore, AGI = $140,000 - $33,000 (deductible expenses) = $107,000. Option A is incorrect because it does not include all of Al's deductible expenses. Option B is incorrect because it assumes that Al is eligible for the additional standard deduction for individuals over age 65, which he is not. Option D is incorrect because it does not subtract Al's deductible expenses from his gross income. Therefore, the correct answer is option C.

Al Is Single, Age 60, and Has Gross Income of $140,000