Binney is a retired auto mechanic. He and his wife, Jennie, receive taxable pensions totaling $35,000, $8,000 of tax-exempt interest income and $6,000 of Social Security benefits during the current year. Assuming that they had no other items of income or deductions for adjusted gross income, Binney and Jennie's adjusted gross income is:
A) $35,000
B) $36,700
C) $38,000
D) $39,700
E) $40,100
Correct Answer:
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