Mary and Philip Purchased an Apartment Building in January 2011

question 89

Multiple Choice

Mary and Philip purchased an apartment building in January 2011, which they actively manage. During the current year, the apartment building generates a loss of $35,000. Their other income is as follows:

$$\begin{array} { l c } \text { Sal aries } & \$ 80,000 \\\text { Dividends and interest } & 8,000 \\\text { Loss from limited partnership acquired in } 2009 & ( 4,000 ) \end{array}$$
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:

Government Decision Making

The process by which officials of a government choose options and take actions affecting the country or a section of its population.

Collective Economics

Practices and principles that focus on the management and optimization of resources for the benefit of a community or group rather than individuals.

Public Choice Theory

A theory that applies economic principles to political science, analyzing how public decisions are made and their impact on society.

Economic Analysis

The systematic approach to determining the optimum use of scarce resources, involving comparison of two or more alternatives in achieving a specific objective under the given assumptions and constraints.