California 540

Ozzy and Sharon are married and filed a joint federal return. Their daughter, Amy, is 10 years old and had total investment income of $3,700 during the tax year. Her investment income is 100% taxable in California. They did not elect to report Amys investment income on their federal return but have elected to report it on their California return. The parents do not have any gains or losses. How much of Amys investment income will the parents report on their California return and where will it be reported?

a) $3,700 on Schedule CA (540), line 8f, column B

b) $1,500, on Schedule CA (540), line 8f, column C

c) $2,200 on Schedule CA (540), line 8f, column C

d) $1,500 on Schedule CA (540), line 8f, column B