Sarah and brad own and operate a small farm. They made $30,000 farming, $4,000 from an inheritance, $2,300 in interest on a bank account, and $3,600 in interest on tax-exempt municipal bonds. Compute their combined gross income.
Do I add total? 39,900?
Or do I add everything but tax exempt? $36,300?
Is this for an income tax form?
It says... use various tax schedules and charts in your textbook as appropriate.
I don't have the text book. It's prob impossible for me to solve this without the textbook right?
Since this has to do with taxes, you can omit the tax-exempt bonds.
Probably #36,300 is the gross income.
To compute Sarah and Brad's combined gross income, you need to add up all the sources of income mentioned.
So, let's break it down:
1. Income from farming: $30,000
2. Inheritance: $4,000
3. Bank account interest: $2,300
4. Tax-exempt municipal bond interest: $3,600
Now, to calculate their combined gross income, you add all of these amounts together:
$30,000 + $4,000 + $2,300 + $3,600 = $39,900
Therefore, their combined gross income is $39,900.