Merle Is a Widow, Age 80 and Blind, Who Is

Multiple Choice

Merle is a widow, age 80 and blind, who is claimed as a dependent by her son. During 2014, she received $4,800 in Social Security benefits, $2,500 in bank interest, and $1,800 in cash dividends from stocks. Merle's taxable income is:

A) $4,300 - $1,000 - $3,100 = $200.
B) $4,300 - $3,100 = $1,200.
C) $4,300 - $1,000 - $1,550 = $1,750.
D) $9,100 - $1,000 - $3,100 = $5,000.
E) None of the above.