Merle Is a Widow,age 80 and Blind,who Is Claimed as a Dependent

Multiple Choice

Merle is a widow,age 80 and blind,who is claimed as a dependent by her son.During 2013,she received $4,800 in Social Security benefits,$2,350 in bank interest,and $1,800 in cash dividends from stocks.Merle's taxable income is:

A) $4,150 - $1,000 - $3,000 = $150.
B) $4,150 - $3,000 = $1,150.
C) $4,150 - $1,000 - $1,500 = $1,650.
D) $8,950 - $1,000 - $3,000 = $4,950.
E) None of the above.