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Allison worked at the local bakery for 1,250 hours last year, at a rate of $12.75 per hour. She contributed...

10. Allison worked at the local bakery for 1,250 hours last year, at a rate of $12.75 per hour. She contributed $2,400 to an IRA and receives $250 per month in alimony payments. What is Allison's adjusted gross income?
○ $13,537.50
○ $21,337.50
○ $10,537.50
○ $12,937.50

Answer

To calculate Allison's adjusted gross income, we need to follow these steps:

  1. Calculate her total earnings from the bakery:
    1,250 hours × $12.75/hour = $15,937.50
  2. Add her annual alimony payments:
    $250/month × 12 months = $3,000
  3. Subtract her IRA contribution:
    $15,937.50 + $3,000 - $2,400 = $16,537.50

Therefore, Allison's adjusted gross income is $16,537.50. However, this option is not listed, so there may be an error in the options provided.

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