you have a gross income of $117,151 and are filing your tax return singly. you claim one exemption and can…

you have a gross income of $117,151 and are filing your tax return singly. you claim one exemption and can take a deduction of $2,713 for interest on your mortgage, an adjustment of $2,791 for business losses, an adjustment of $1,346 for alimony, a deduction of $2,086 for property taxes, a deduction of $2,376 for contributions to charity, and an adjustment of $1,091 for contributions to your retirement fund. the standard deduction for a single filer is $5,700, and exemptions are each worth $3,650. what is the difference between your adjusted gross income and your taxable income? a. $16,053 b. $9,350 c. $10,825 d. $14,475 please select the best answer from the choices provided

you have a gross income of $117,151 and are filing your tax return singly. you claim one exemption and can take a deduction of $2,713 for interest on your mortgage, an adjustment of $2,791 for business losses, an adjustment of $1,346 for alimony, a deduction of $2,086 for property taxes, a deduction of $2,376 for contributions to charity, and an adjustment of $1,091 for contributions to your retirement fund. the standard deduction for a single filer is $5,700, and exemptions are each worth $3,650. what is the difference between your adjusted gross income and your taxable income? a. $16,053 b. $9,350 c. $10,825 d. $14,475 please select the best answer from the choices provided

Answer

Explanation:

Step1: Calculate adjusted gross income

Adjusted gross income (AGI) is calculated by subtracting adjustments from gross income. Adjustments = $2,791 (business losses)+$1,091 (retirement - fund contributions)+$2,376 (charity contributions) = $6,258 AGI = Gross income - Adjustments = $117,151−$6,258 = $110,893

Step2: Calculate taxable income

Taxable income = AGI - (Deductions + Exemptions) Deductions = $2,713 (mortgage interest)+$1,346 (alimony)+$2,086 (property - taxes)+$5,700 (standard deduction) = $11,845 Exemptions = $3,650 Total deductions and exemptions = $11,845 + $3,650=$15,495 Taxable income = $110,893−$15,495 = $95,398

Step3: Calculate the difference

Difference = AGI - Taxable income = $110,893−$95,398 = $15,495

Answer:

None of the provided options are correct. The correct difference is $15,495.