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 2012, she received $4,800 in Social Security benefits, $2,200 in bank interest, and $1,800 in cash dividends from stocks.Merle's taxable income is:

A) $4,000 - $950 - $2,900 = $150.
B) $4,000 - $2,900 = $1,100.
C) $4,000 - $950 - $1,450 = $1,600.
D) $8,800 - $950 - $2,900 = $4,950.
E) None of the above.