Molly and Steve Are Married and Live in Texas

Molly and Steve are married and live in Texas. Molly earns a salary of $50,000 and Steve owns a rental property that gives him $35,000 of income. If they filed separate tax returns, what amount of income would Steve report?

A) $35,000
B) $85,000
C) $42,500
D) $60,000
E) None of these