Tom and Heili, husband and wile, file separate retums. Tom and Heidi live in a common law state. Tom's salary is $83,000 and Heidi'5 salary is $80,000. Heidi receives dividend income of $7,000 from stock inherited from her parents. Tom recelves interest income of $5,000 from bonds purchased with his salary after marriage. Tom and Heidi recoive $12,000 dividend income from stock they purchased jointly. Tom's income would be A. $93,000 B. 594,000 C. $96,500 0,592,000 QUESTION 18 Norah, who gives music lessons, is a calendaryear taxpayer using the cash-basis method of accounting. On October 1 st of this yoar, she receives $1,400 for a one year contract beginning on that dase to provide 10 lessons. She gave 6 lossons this year. How much should Norah include in inoome this year? A. $1,4000 B. $480 C. $1,200 0,5360