Question

Adriana earned a gross income of $46,250 last year. She made $569.10 in IRA contributions, donated $841 to her favorite charity and paid $1,399.03 in home mortgage interest. If Adriana claims a standard deduction of $5,700 and her exemption is $3,650, what is her taxable income?

Answer 1

Are all those things tax deductible? Just subtract them.

Answer 2

Sakura purchased ski equipment for $1,248 using a six-month deferred payment plan. The interest rate after the introductory period is 23.79%. A down payment of $175 is required as well as a minimum monthly payment of $95. What is the balance at the beginning of the seventh month if only the minimum payment is made during the introductory period?
$1,207.13

$659.00

$1,112.13

$637.13