Required information The foltowng nformatis to the questions

Required information The foltowng nformatis to the questions displayed below] Marc and Michelle are married and earned salaries this year of $71,600 and $14,850, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $1,450 from corporate bonds. Marc contributed $3,450 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $2,450. Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $2,000 child tax credit for Matthew. Marc and Michelle paid $7,900 of expenditures that qualify as itemized deductions and they had a total of $6,710 in federal income taxes withheld from their paychecks during the course of the year. (Use the tax rate schedules.) a. What is Marc and Michelle\'s gross income? Description Amount Corporate bond interest Marc\'s salary Michelle\'s salary Gross income b. What is Marc and Michele\'s adjusted gross income?

Solution

person\'s paycheck before any withholding or deductions. Personal gross income from employment is calculated for hourly workers by multiplying the hours worked by the hourly rate (including overtime); for salaried workers, it\'s calculated by dividing the annual income by the number of pay periods.

Calculating Company Gross Income

Gross income is a line item that is sometimes included in a company\'s income statement but is not required. If not displayed, it\'s calculated as gross revenue minus COGS.

Company Gross Income = Gross Revenue - Cost of Goods Sold (COGS)

Gross income is sometimes referred to as gross margin, however, gross margin is more correctly defined as a percentage, used as a profitability metric. The gross income for a company reveals how much money it has made on its products or services after subtracting the direct costs to make the product or provide the service.

Read more: Gross Income Definition | Investopedia https://www.investopedia.com/terms/g/grossincome.asp#ixzz5LOOjBrur
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