Mr and Mrs

question 107

Multiple Choice

Mr. and Mrs. Kay, ages 68 and 66, file a joint return. Mrs. Kay is legally blind. Compute their standard deduction.

• A) $12,600
• B) $16,350
• C) $15,100
• D) $17,250

---

Definitions:

Accounts Payable Period

The average number of days it takes for a business to pay its invoices from suppliers.

Accounts Receivable

The money owed to a business by its clients or customers for goods or services provided on credit.

Compensating Balance

A minimum balance that must be maintained in a bank account, often required by banks as a condition for loans or to waive service charges.