Marsha is single,had gross income of $50,000,and incurred the following expenses:

Her AGI is:
A)$43,000.
B)$49,750.
C)$40,000.
D)$39,750.
E)None of the above.

Question

Marsha is single,had gross income of $50,000,and incurred the following expenses:
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Her AGI is:
A)$43,000. 
B)$49,750. 
C)$40,000. 
D)$39,750. 
E)None of the above.

Quizplus · Accepted Answer

Marsha's AGI can be calculated by subtracting her total deductions (which are not provided) from her gross income. Therefore, we cannot calculate her exact AGI, but we can estimate it using the information provided. She has no adjustments to income (such as IRA contributions) noted, so her AGI is likely close to her gross income of $50,000. None of the expenses listed would qualify as above-the-line deductions, which reduce AGI, so we cannot subtract them from her gross income to calculate her AGI. Therefore, the best estimate of Marsha's AGI is close to her gross income of $50,000. However, the only answer choice close to $50,000 is B, which is $49,750.

Marsha Is Single,had Gross Income of $50,000,and Incurred the Following