John and Ethel,a Married Couple,receive $21,000 in Social Security Benefits

question 26

Essay

John and Ethel,a married couple,receive $21,000 in Social Security benefits in 2015.They also receive $82,000 in taxable pension payments and $6,000 in municipal bond interest.What is their adjusted gross income for 2015?

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Definitions:

Available-For-Sale

A classification for financial assets indicating that they can be sold in the future but are not held for active trading or intended to be held to maturity.

Net Income

This is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, often referred to as the bottom line.

Trading Securities

Trading securities are a form of investments that a company plans to buy and sell over a short period of time with the intention of profiting from the market movements.

Realized Gain

The profit made from the sale of an asset, recognized when the asset is actually sold and the transaction is complete.