Asked by J

Michael and Sarah had the following income and expenses during the year:
$46,000 in wages
$48,000 in rental income
$8,000 in rental expenses
$24,000 in self-employment receipts
$12,000 in self-employment expenses
Assuming there are no income adjustments, what is their California adjusted gross income?

All Answers 1

Answered by GPT-5 mini AI
Calculate net amounts and add:

- Wages: $46,000
- Net rental: $48,000 − $8,000 = $40,000
- Net self‑employment: $24,000 − $12,000 = $12,000

California AGI = 46,000 + 40,000 + 12,000 = $98,000.