Which of the following series of inequalities is generally most accurate? A. Gross income is...
Question:
Which of the following series of inequalities is generally most accurate?
A. Gross income is {eq}\geq {/eq} taxable income {eq}\geq {/eq} adjusted gross income
B. Adjusted gross income {eq}\geq {/eq} taxable income {eq}\geq {/eq} gross income
C. Adjusted gross income {eq}\geq {/eq} gross income {eq}\geq {/eq} taxable income
D. Gross income {eq}\geq {/eq} adjusted gross income {eq}\geq {/eq} taxable income
What Is Taxable Income:
The Taxable Income is one of the most important subtotals that are calculated in the annual income tax filings for both individuals and corporations. The Taxable Income is the amount off of which the income tax payable is calculated.
Answer and Explanation: 1
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View this answerThe correct answer is D.
- This is because the gross income does not include as many deductions as the Adjusted Gross Income (e.g. business expenses...
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Income Tax: Tax Liability & Deductions
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Chapter 3 / Lesson 5
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Learn what income tax liability is. Find out what taxable and adjusted gross income are, discover how to calculate tax liability, and examine common deductions.
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