Merle is a widow, age 80 and blind, who is claimed as a dependent by her son.

Question:

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 these