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:

Net Earnings

The amount of income left after deducting taxes, benefits, and other expenses from gross earnings; often referred to as take-home pay.

Financial Support

Monetary assistance provided to an individual or organization to help cover expenses.

Employee

An individual who works for another person or business in exchange for compensation.

Dependent

A person who relies on another, especially a family member, for financial support.