Economics: Principles, Problems, and Policies, 19th Edition

by McConnell, Campbell R.; Brue, Stanley L.; Flynn, Sean M.

Published by McGraw-Hill Education

ISBN 10: 0073511447

ISBN 13: 978-0-07351-144-3

Chapter 16 - Public Finance: Expenditures and Taxes - Problems - Page 356: 3c

Answer

${$46,000}$

Work Step by Step

From your answer from the last step, your taxable income is ${$52,700}$ The sum of these tax-exempt expenditures is ${$700}$ +${$2000}$ +${$4000}$ = ${$6700}$ So now, we can subtract from our taxable income, ${$52,700}$ - ${$6700}$ = ${$46,000}$

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