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

question 96

Multiple Choice

Hannah, age 70 and single, is claimed as a dependent by her daughter. During 2018, she had interest income of $2,550 and $800 of earned income from babysitting. Hannah's taxable income is:

• A) $700.
• B) $900.
• C) $2,250.
• D) $2,550.
• E) None of these.

---

Definitions:

Yield Rate

The yield rate, often referred to as the yield, is the income return on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost.

Stated Interest Rate

The interest rate explicitly stated on a loan or investment agreement, not accounting for compounding.

Face Value

The nominal or dollar value printed on a security or financial instrument, such as a bond or stock certificate, representing its worth at issuance.

Face Value

The nominal value or dollar value printed on a financial instrument like a bond or bill, representing its worth at maturity.