Emma, a single taxpayer, obtains permission to change from a calendar year to a fiscal year ending June 30, 2019. During the six months ending June 30, 2019, she earns $40,000 and has $8,000 of itemized deductions. What is the amount of her annualized income

The amount of her annualized income = $64,000

Explanation:

Given:

Six month income = $40,000

Total deduction during six month = $8,000

The amount of her annualized income = ?

Computation of the amount of her annualized income:

The amount of her annualized income = (Six-month income - Total deduction during six months) × 12/6

The amount of her annualized income = ($40,000 - $8000) × 12/6

The amount of her annualized income = ($32,000) × 12/6

The amount of her annualized income = $384,000 / 6

The amount of her annualized income = 64,000

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