BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$502; $3, 138 refund
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$31.38; $5.02 refund
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$3, 138 ;$502 refund
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$5.02; $31.38 refund
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Detailed explanation-1: -Your gross income minus all available deductions is your taxable income. Compare that amount to your tax bracket to estimate the amount you’ll owe before applying any available tax credits.
Detailed explanation-2: -Taxable income or gross income or adjusted gross income includes salaries, wages, bonuses, etc. along with unearned income and investment income. It is the amount that will be used to determine your tax liability.
Detailed explanation-3: -The AGI calculation is relatively straightforward. It is equal to the total income you report that’s subject to income tax-such as earnings from your job, self-employment, dividends and interest from a bank account-minus specific deductions, or “adjustments” that you’re eligible to take.