Question
Todd and Hillary, husband and wife, file separate returns. Todd and Hillary live in a community property state that considers separate property income to be
Todd and Hillary, husband and wife, file separate returns. Todd and Hillary live in a community property state that considers separate property income to be community income. Todd's salary is $82,000 and Hillary's salary is $80,000. Hillary receives dividend income of $7,000 from stock inherited from her parents. Todd receives interest income of $5,000 from bonds purchased with his salary after marriage. Todd and Hillary receive $10,000 dividend income from stock they purchased jointly. Todd's income would be
A. 92,000
B. 93,000
C. 94,500
D 97,000
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