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Answer on Microeconomics Question for Seth Morgan

Question #43365
Tonya had the following items for last year:



Short-term capital gain


Nonbusiness bad debt


Long-term capital loss


For the current year, Tonya had the following items:



Collection of last year’s bad debt


Determine Tonya's adjusted gross income for the current year.
Expert's answer
Adjusted gross income = total gross income - deductions.
TGI = Salary + Capital gains (losses) = $45,000 + $12,000 - $8,000 = $49,000
AGI = $49,000 - $12,000 $37,000

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