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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.
$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 _____.