Charles is a single person, age 35, with no dependents. In 2015, Charles has gross income of $75,000 from his sole proprietorship. Charles also incurs $80,000 of deductible business expenses in connection with his proprietorship. He has interest and dividend income of $22,000. Charles has no itemized deductions. Charles's taxable income is

The correct answer is $7,650.

Explanation:

According to the scenario, the computation of the given data are as follows:

Gross income from business               $75,000

 Business deductions (Less)                $80,000

Interest and dividend income (Add)    $22,000

Gross income                                        $17,000

Standard deduction (Less)                   $5,700

Exemption (Less)                                  $3,650

Net  Taxable income                             $ 7,650

So, the net taxable income is $7,650.