Merle is a widow,age 80 and blind,who is claimed as a dependent by her son.During 2011,she received $4,800 in Social Security benefits,$2,200 in bank interest,and $1,800 in cash dividends from stocks.Merle's taxable income is:
A) $4,000 - $950 - $2,900 = $150.
B) $4,000 - $2,900 = $1,100.
C) $4,000 - $950 - $1,450 = $1,600.
D) $8,800 - $950 - $2,900 = $4,950.
E) None of the above.
Correct Answer:
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