Bart,a Single Taxpayer,has Recently Retired

question 24

Multiple Choice

Bart,a single taxpayer,has recently retired.This year,he received $24,000 in pension payments and $5,000 of social security payments.What amount must Bart include in his gross income for the social security payments?

• A)$4,250
• B)$2,500
• C)$1,500
• D)$750
• E)Zero

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Definitions:

Convert

To change something into a different form or properties, often used in financial contexts such as converting currencies or securities.

Gain

An increase in the value of an asset or a decrease in the value of a liability which contributes to an increase in the owner's equity.

Loss

The financial state where expenses exceed revenues within a specific period.

Guaranteed Allowance

An allowance for doubtful accounts that a company anticipates as an expense, guaranteeing a certain value.