Mary and Philip Purchased an Apartment Building in January 2004,which

question 114

Multiple Choice

Mary and Philip purchased an apartment building in January 2004,which they actively manage.During the current year,the apartment building generates a loss of $35,000.Their other income is as follows:
$\begin{array}{lr} \text { Salaries } &\$ 80,000 \\ \text { Dividends and interest } &8,000 \\ \text { Loss from limited partnership acquired in 1999 } &(4,000) \end{array}$
What is Mary and Philip's adjusted gross income?

• A)$59,000
• B)$63,000
• C)$84,000
• D)$88,000
• E)None of the above.

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Definitions:

Journalizing

The process of recording transactions in a journal so that their effects are reflected in the accounting records.

Transaction Data

Information collected about each specific activity that takes place within a business, which can be used for various financial and management analysis purposes.

Journal

A daily record of financial transactions, providing a detailed account of all entries for each transaction.

Chart of Accounts

An organized list of all ledger account titles and numbers used by a company, serving as a framework for the recording of financial transactions.