Question

8. Jerome has exemptions of $7,500 for dependents. His deductions include $2,400 in allowable

medical expenses, and $450 for damage to his home caused by a hailstorm. Jerome's taxable income if

he has an income of $47,900 is

O a. $10,350

Ob. $37,550

C. $40,400

O d. $58,250

Answer 1

Jerome's taxable income is calculated by subtracting his exemptions and deductions from his total income. After the calculation, Jerome's taxable income is $37,550.

Step-by-step explanation:

To calculate Jerome's taxable income, we subtract the exemptions and deductions from his total income. Jerome's total income is $47,900. He has exemptions for dependents amounting to $7,500, medical expenses of $2,400, and damage to property of $450. To get the taxable income, we use the formula:

taxable income = adjusted gross income - (deductions + exemptions).

Plugging in Jerome's numbers:

taxable income = $47,900 - ($7,500 + $2,400 + $450)

taxable income = $47,900 - $10,350

taxable income = $37,550

Thus, Jerome's taxable income is $37,550.