BUSN 380 STUDY Career Path Begins/busn380study.com BUSN 380 STUDY Career Path Begins/busn380study.com | Page 26

$44,000.
$45,400.
$42,000.
$42,800.
Question 6. 6. (TCO 2) _____ can be calculated as a result of various
items being subtracted from gross income, such as individual
retirement account contributions and alimony payments.
Adjusted gross income
Taxable income
Earned income
Passive income
Total exclusions
Question 7. 7. (TCO 2) Expenses that a taxpayer is allowed to deduct
from adjusted gross income are called _____.
exemptions
exclusions
itemized deductions
tax credits
passive income
Question 8. 8. (TCO 2) Taxes owed can be reduced through _____.
the standard deduction
a tax credit