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Yvette Bradbury is an account representative at Commerce Savings Bank, earning $46,800 annually, paid semimonthly. She contributes 3 percent of her gross pay to her qualified 401(k) plan on a pre-tax basis and has a pre-tax medical premium of $65.


(Do not round intermediate calculations and round your final answer to 2 decimal places.)


Required:

What is her taxable income?

Respuesta :

The taxable income is = $45331

Explanation:

The taxable income would be the net of annual earnings after deducting contribution and premium.

In order to calculate the taxable income, the following formula will be used.

The taxable income = Gross earnings that has been earned – Contribution that has been made  – pre-tax medical premium

                         [tex]=46800-(46800 \times 3 \%)-65[/tex]

                         [tex]=46800-1404-65[/tex]

                          = 45331 (Answer)

Thus, the taxable income of Yvette Bradbury as per the calculations made above is = $45331

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