Question: In 2 0 2 3 , Aurora received a $ 3 2 , 1 0 0 bonus computed as a percentage of profits. In 2

In 2023, Aurora received a $32,100 bonus computed as a percentage of profits. In 2024, Aurora's employer determined that the 2023 profits had been incorrectly computed, and Aurora had to refund the $9,630 in 2024. Assume that Aurora was in the 35% tax bracket in 2023 but in the 12% bracket in 2024.
If required, round your final answers to the nearest dollar.
a. In 2023, how much is Aurora required to include in gross income?
$fill in the blank 1
b. In 2024, what is the amount of the deduction Aurora can claim?
$fill in the blank 2
What is the reduction in taxes for 2024 as a result of the deduction?
$fill in the blank 3

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