Question

Hermano and Rosetta are a retired couple who receive $10,000 in Social Security benefits during the current year. They also receive $3,000 in interest on their savings account and taxable pension payments of $28,000. What is their gross income?

Answer 1

Answer:

$41,000

Explanation:

Gross income an individual or individuals is the total amount of income that he or they receive from his or their employer(s) before taxes are deducted and other allowable deductions are made.

The gross income is an aggregation of all income from all sources whether the income is received in cash or in kind. That is, part of the income to consider when calculating gross income are income received in kind like property or services received.

From the question, the gross income of Hermano and Rosetta can be calculated by adding all the income they received from all sources before tax are deducted as follows:

Gross Income = Social Security benefits + Interest on savings account + Taxable pension payment

Gross Income = $10,000 + $3,000 + $28,000

                        = $41,000.

Therefore, the gross income of Hermano and Rosetta is $41,000.