Hi!
can somebody clairfy this
lima’s pre tax income is 140k
and she needs 96000 expense and wishes to make 12000 saving
tax rate is 25% so she needs pre tax income 128,000 so far ok
but the answer said because 140k-128k =12k , she could make that contribution.
My perspective 140k is pre tax income so 35k should be deducted
i.e she does not have sufficient income. Am I correct?