Todd and Hillary, Husband and Wife, File Separate Returns

question 553

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

---

Definitions:

Satisfaction

The feeling of pleasure or contentment arising from meeting one's needs or expectations.

Rational Choice

A theory in economics that assumes individuals always make prudent and logical decisions that provide them with the highest amount of personal utility.

Costs and Benefits

An analysis approach that compares the total costs and total benefits associated with a particular action or decision to determine its feasibility or worth.

Predictable Ways

Methods or patterns that can be anticipated or expected based on previous observations or known properties.