4
AssignmentMultiple Choice

Tax Returns

Question 4 • FL-2102373-Personal Finance and Money Management Honors

Cahya, while calculating their tax adjustments, notes that they can make adjustments of $3,435 for contributions to their retirement plan, $3,393 for business losses, and $1,128 for business expenses. If Cahya’s gross income is $45,942, what is their adjusted gross income?

Answer
A
$53,898
B
$40,242
C
$41,421
D
$37,986

Explanation

Add the adjustments: $3,435 + $3,393 + $1,128 = $7,956. Subtract that total from gross income: $45,942 − $7,956 = $37,986, so Cahya’s adjusted gross income is $37,986.

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