Wilma, Age 70 and Single, Is Claimed as a Dependent

question 174

Multiple Choice

Wilma, age 70 and single, is claimed as a dependent on her daughter's tax return. During 2017, she had interest income of $2,500 and $800 of earned income from babysitting. Wilma's taxable income is:

• A)$700.
• B)$900.
• C)$1,750.
• D)$2,250.
• E)None of these.

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Definitions:

Interest Rate

The percentage charged on the total amount of borrowed money or paid on investments, over a specific period of time.

Maturity Value

The total amount that will be paid to an investor at the end of a fixed-income security's term, including both the original principal and the interest earned.

Promissory Note

A written promise to pay a specified amount of money at a predetermined time or on demand to a named party.

Interest Value

The amount of income earned from an investment, typically expressed as a percentage of the principal.