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

question 91

Multiple Choice

Wilma, age 70 and single, is claimed as a dependent on her daughter's tax return.During 2012, she had interest income of $2,400 and $800 of earned income from baby sitting.Wilma's taxable income is:

• A)$700.
• B)$850.
• C)$1,800.
• D)$2,250.
• E)None of the above.

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Definitions:

Incentives

Rewards or benefits, often linked to performance, that motivate individuals to act in certain ways.

Downsizing

The elimination of a significant number of employees from an organization.