Sean and Martha Are Both Over Age 65 and Martha

question 61

Essay

Sean and Martha are both over age 65 and Martha is considered blind by tax law standards.Their total income in 2015 from part-time jobs and interest income from a bank savings account is $60,000.Their itemized deductions are $12,000.
Required: Compute their taxable income.

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Definitions:

Speculative Motive

The intent to hold cash or assets in anticipation of future price changes to make a profit.

Money Supply

The aggregate money supply in an economy at a particular time, covering cash, coins, and deposits in checking and savings accounts.

Demand Deposits

Bank accounts from which deposited funds can be withdrawn at any time without any advance notice to the bank.

Treasury Bills

Short-term government securities issued at a discount from the face value and maturing in a year or less, representing a secure, low-risk investment option.