Bianca and Dave's total taxable income is equal to: C. $48,403.
Taxation can be defined as the involuntary fees that are levied on individuals or business firms by the government of a particular country, so as to generate revenues that can be used to fund public projects, institutions and activities.
In Economics, there are different types of tax levied on individuals or business firms by the government, and these include the following:
In Financial accounting, the total taxable income can be calculated by using this formula:
Taxable income = gross income - total exemptions - total deductions
Substituting the given parameters into the formula, we have;
Taxable income = $81,031 - 3 × ($2,914 + $1,939 + $4,825) - $2,420
Taxable income = $81,031 - $29,034 - $2,420
Taxable income = $49,577
Total taxable income = $49,577 - $1,174
Total taxable income = $48,403.
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Complete Question:
Bianca and Dave are a married couple filing a joint tax return. They have a combined gross income of $81,031 and claim four exemptions. They can make an adjustment of $2,914 for business expenses, an adjustment of $1,939 for business losses, a deduction of $4,140 for medical expenses, an adjustment of $4,825 for contributions to their retirement fund, and a deduction of $2,420 for charitable donations. If exemptions are worth $3,650 apiece and the standard deduction for a joint return is $8,350, what is their total taxable income?
