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During the year, Kim sold the following assets: personal auto for a $8,000 gain, stock investment...

During the year, Kim sold the following assets: personal auto for a $8,000 gain, stock investment for a $10,000 loss, and pleasure yacht for a $3,000 loss. His Adjusted Gross Income before considering the above is $50,000. What is his Adjusted Gross Income after taking these into account?

$45,000

$48,000.

$40,000.

$47,000
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Answer #1

Answer

$45000

Reason

Gross income is a business or individual income earned during a period

Gross income $50000

Add: gain on sale of personal auto $8000

Less :loss on stock investment ( $10000)

Less:loss on pleasure yacht ( $3000)

Adjusted gross income $45000

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