Ralph Has a Gross Income of $53 000

Multiple Choice

Ralph has a gross income of $53 000. He has business expenses of $18 000 and incurred $4000 in college expenses for his daughter, who did not work and is a freshman at a local community college. Personal basic exemptions of $8500 and a tax rate of 26 percent apply. Compute Ralph's tax liability for the current year.

A) $9100
B) $6890
C) $5850
D) $8060