16
QuizMultiple Choice

Topic Test

Question 16 • ASSIGN FULL - EVP: PGCPS FINANCIAL LITERACY OC (FALL2026) - 795060

Say you are filing as a single taxpayer. You have a gross income of $61,026 and claim two exemptions. You can make a deduction of $2,871 for interest on your mortgage, a deduction of $2,376 for property tax, an adjustment of $3,206 for business losses, an adjustment of $2,575 for contributions to your retirement plan, a deduction of $2,682 for medical expenses, and an adjustment of $2,440 for business expenses. If exemptions are each worth $3,650 and the standard deduction is $5,700, what is your total taxable income?

Answer
A
$39,805
B
$35,526
C
$37,576
D
$43,276

Explanation

Subtract the adjustments from gross income: $61,026 − ($3,206 + $2,575 + $2,440) = $52,805. The mortgage interest, property tax, and medical deductions total $7,929, which is greater than the $5,700 standard deduction, so use $7,929. Subtract those deductions and the two exemptions worth $7,300: $52,805 − $7,929 − $7,300 = $37,576, the taxable income in choice C.

AI-written and checked against the verified answer.

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