8
QuizMultiple Choice

Tax Returns

Question 8 • ASSIGN FULL - EVP: PGCPS FINANCIAL LITERACY OC (FALL2026) - 795060

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

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

Explanation

Add Kevin’s adjustments: $3,435 + $3,393 + $1,128 = $7,956. Subtract that total from his gross income: $45,942 − $7,956 = $37,986. His adjusted gross income is $37,986, which is choice D.

AI-written and checked against the verified answer.

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