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 2016,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 - $1,050 - $3,100 = $150.
B) $4,300 - $3,100 = $1,200.
C) $4,300 - $1,050 - $1,550 = $1,700.
D) $9,100 - $1,050 - $3,100 = $4,950.
E) None of these.