Merle Is a Widow, Age 80 and Blind, Who Is

question 106

Multiple Choice

Merle is a widow, age 80 and blind, who is claimed as a dependent by her son. During 2014, she received $4,800 in Social Security benefits, $2,500 in bank interest, and $1,800 in cash dividends from stocks. Merle's taxable income is:

• A) $4,300 - $1,000 - $3,100 = $200.
• B) $4,300 - $3,100 = $1,200.
• C) $4,300 - $1,000 - $1,550 = $1,750.
• D) $9,100 - $1,000 - $3,100 = $5,000.
• E) None of the above.

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Definitions:

Thoracic Duct

Largest lymph vessel in the body, beginning at the cisterna chyli and emptying into the left subclavian vein; drains the left side of the head and neck, the left-upper thorax, the left-upper limb, and the inferior half of the body.

Circulatory System

The body's system responsible for the transport of blood, nutrients, oxygen, carbon dioxide, and hormones throughout the body.

Lipids

A group of naturally occurring molecules that include fats, waxes, sterols, and fat-soluble vitamins, among others, used by the body for energy and making up cell membranes.

Low-Density Lipoprotein

Low-density lipoprotein (LDL) is a type of cholesterol often referred to as "bad" cholesterol, which can accumulate in the walls of arteries and contribute to heart disease.