Elsie Received the Following Distributions from Virginiana Mutual Fund for the Calendar

question 59

Multiple Choice

Elsie received the following distributions from Virginiana Mutual Fund for the calendar year 2015: Elmer, Elsie's husband, did not own any of the Virginiana Mutual Fund shares, but he did receive $1,600 in interest on a savings account at the Moss National Bank. Elmer and Elsie filed a joint income tax return for 2015. What portion of the distributions from Virginiana Mutual Fund is taxable as ordinary income on their 2015 individual income tax return?

• A)$0
• B)$250
• C)$420
• D)$500
• E)None of the above

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Definitions:

Equilibrium Wage

The salary point at which labor supply aligns perfectly with labor demand.

Marginal Product

The additional output that is produced by employing one more unit of a factor of production, holding other factors constant.

Equilibrium Wage

The wage rate that balances the quantity of labor supplied and the quantity of labor demanded.

Perfectly Competitive

A market structure characterized by a large number of small firms, identical products sold by all firms, and no barriers to entry or exit.