Russell Starling, an Australian Citizen and Resident, Received the Following

question 82

Multiple Choice

Russell Starling, an Australian citizen and resident, received the following investment income during 2018: $5,000 of dividend income from ownership of stock in a U.S. corporation, $10,000 interest from a certificate of deposit in a U.S. bank, $3,000 of interest income earned from a loan to Clint Westwood, a U.S. citizen, and $2,000 capital gain from sale of a stock in a U.S. corporation. How much of Russell's income will be subject to U.S. taxation in 2018?

• A) $20,000
• B) $15,000
• C) $10,000
• D) $8,000

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Definitions:

Human Capital

The knowledge and skills that make a person productive.

Productive Skills

Productive skills are those related to the output of work, such as writing and speaking, which enable individuals to produce goods, services, or ideas effectively.

Highly Educated Workers

Individuals who have attained a high level of education, often holding college degrees or higher, which usually results in specialized skills.

Less-Educated Workers

Workers with lower levels of formal education, often facing different employment opportunities and wage scales compared to more educated workers.