Mary and Philip Purchased an Apartment Building in January 2004,which

question 103

Multiple Choice

Mary and Philip purchased an apartment building in January 2004,which they actively manage.During the current year,the apartment building generates a loss of $35,000.Their other income is as follows:
$\begin{array}{lr}\text { Salaries } & \$ 80,000 \\\text { Dividends and interest } & 8,000 \\\text { Loss from limited partnership acquired in } 1999 & (4,000) \end{array}$
What is Mary and Philip's adjusted gross income?

• A)$59,000
• B)$63,000
• C)$84,000
• D)$88,000
• E)None of the above.

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Definitions:

Direct Expenses

Costs that can be directly attributed to a specific product, service, or project, such as raw materials and labor.

Net Loss

A net loss occurs when a company's total expenses exceed its total revenues during a specific accounting period, indicating a negative financial performance.

Export Cost

Expenses associated with sending goods or services to another country for sale or trade.

Variable Manufacturing Costs

Costs that vary directly with the level of production output, including expenses like raw materials and hourly labor costs.