Carla is a single individual with a gross annual income of $50,000 She claims $10,000 in deductions and $5,000 in exemptions. What is Carla's taxable income after accounting for deductions and exemptions?
Answer
A
30 dollars comma 000
B
40 dollars comma 000
C
55 dollars comma 000
D
35 dollars comma 000
Explanation
Subtract the deductions and exemptions from Carla’s gross income: $50,000 − $10,000 − $5,000 = $35,000. Her taxable income is $35,000, which is choice D.
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