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Question 2. 2. (TCO 2) Interest earnings of $2,400 from a taxable
investment for a person in a 28% tax bracket would result in after-tax
earnings of
$672.
$1,728.
$2,400.
$3,333.
$8,571.
Question 3. 3. (TCO 2) _____ can reduce taxable income.
Portfolio income
Tax credits
Exclusions
Passive income
Earned income
Question 4. 4. (TCO 2) Mary has earned money from a limited
partnership, so she would need to report this as _____ income.
passive
capital gain
portfolio
earned
excluded
Question 5. 5. (TCO 2) George Washburn had earnings from his salary
of $44,000, interest on savings of $800, a contribution to a traditional
individual retirement account of $2,000, and dividends from mutual
funds of $600. George's adjusted income (AGI) would be
$43,400.
$44,000.
$45,400.
$42,000.