Question

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?
a. $53,898
b. $40,242
c. $41,421
d. $37,986
please select the best answer from the choices provided
a
b
c
d

Explanation:

Step1: Identify total adjustments

First, sum up all the adjustments. The adjustments are $3,435 (retirement contributions), $3,393 (business losses), and $1,128 (business expenses). So total adjustments = $3,435 + $3,393 + $1,128.
Calculating that: $3,435 + $3,393 = $6,828; then $6,828 + $1,128 = $7,956.

Step2: Subtract from gross income

Kevin's gross income is $45,942. To find adjusted gross income, subtract total adjustments from gross income: $45,942 - $7,956.
Calculating that: $45,942 - $7,956 = $37,986. Wait, no, wait—wait, maybe I misread. Wait, the problem says "adjustments of $3,435 for contributions to his retirement plan, $3,393 for business losses, and $1,128 for business expenses". Wait, gross income is $45,942? Wait, no, wait the original problem: "If Kevin’s gross income is $45,942, what is his adjusted gross income?" Wait, no, wait the numbers: wait, maybe I added wrong. Wait, $3,435 + $3,393 + $1,128. Let's recalculate: 3435 + 3393 = 6828; 6828 + 1128 = 7956. Then 45942 - 7956 = 37986? But option d is $37,986. Wait, but let me check again. Wait, maybe the gross income is $45,942? Wait, the problem says: "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?" So yes, adjusted gross income = gross income - total adjustments. So 45942 - (3435 + 3393 + 1128) = 45942 - 7956 = 37986, which is option d. Wait, but wait, maybe I made a mistake. Wait, let's check the options. Option d is $37,986. So that's the calculation.

Answer:

d. $37,986