Answer:
Mustafa's pretax income is $59,808.
Step-by-step explanation:
Given in the question Mustafa's annual salary = $67,200
and Mustafa contribute 11% of his salary to his 401 k plan.
Since we know that 401 k plan is a retirement plan in which an employee gets the exemption from his salary on a pretax basis.
Therefore exemption will be = 11% of $67,200
= 67,200×0.11
= $7,392
Now pretax income or taxable income = 67,200-7,392 = $59,808
Therefore pretax income of Mustafa is $59,808.
