• 
  

  Taxable Income Components	Amount (USD)
  Gross Income	$140,000
  Deductions and Exemptions	($40,000)
  Taxable Income	$100,000
  Tax Rate (25%)	($25,000)
  _____________________________
  Total Tax Liability	$25,000

  Requirements:

  1. Compute the taxable income for an individual with a gross income of $140,000 and deductions/exemptions totaling $40,000.
  2. Apply a tax rate of 25% to determine the tax liability.
  3. Present all amounts in USD.
  4. Highlight the total tax liability.