Todd and Hillary,husband and Wife,file Separate Returns

question 88

Multiple Choice

Todd and Hillary,husband and wife,file separate returns.Todd and Hillary live in a community property state that considers separate property income to be community income.Todd's salary is $82,000 and Hillary's salary is $80,000.Hillary receives dividend income of $7,000 from stock inherited from her parents.Todd receives interest income of $5,000 from bonds purchased with his salary after marriage.Todd and Hillary receive $10,000 dividend income from stock they purchased jointly.Todd's income would be

• A)$92,000.
• B)$93,000.
• C)$94,500.
• D)$97,000.

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Definitions:

Price Volatility

The degree to which the price of an asset, security, or market index moves up or down over time.

Coupon Bond

A bond that pays the holder a fixed interest payment (coupon) at regular intervals until maturity, when the principal amount is repaid.

Maturity

The date on which the principal amount of a financial instrument, such as a bond or loan, becomes due and is to be paid.

Price Sensitive

Pertaining to stocks or securities that are highly responsive to changes or news in the market, affecting their price movements.