Heloise, Age 74 and a Widow, Is Claimed as a Dependent

question 67

Essay

Heloise, age 74 and a widow, is claimed as a dependent by her daughter.For 2012, she had income as follows: $2,500 interest on municipal bonds; $3,200 Social Security benefits; $3,000 income from a part-time job; and $2,800 dividends on stock investments.What is Heloise's taxable income for 2012?

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Definitions:

Time and Materials Pricing

A billing method where customers are charged based on the actual time spent on a project and the cost of materials used.

Salvage Value

The estimated residual value of an asset at the end of its useful life.

Book Value

The value of an asset as recorded on a company's balance sheet, calculated as the cost of an asset minus accumulated depreciation.

Variable Operating Costs

Costs that fluctuate with the level of production or sales volume, such as materials and labor.