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In 2018, Carol, Who Is 54 and Single, Earned a Salary

Question 86

Multiple Choice

In 2018, Carol, who is 54 and single, earned a salary of $54,000 and $6,000 of interest on State of Nevada bonds. She contributed $2,000 to her Roth IRA, paid a $12,000 hospital bill, state income taxes of $1,500, real estate taxes of $900, mortgage interest of $4,500, and $2,000 interest on her margin account under which she purchased the bonds. What is Carol's taxable income?


A) $37,050
B) $39,150
C) $41,050
D) $43,050

Correct Answer:

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