who is single, retired from his job this year. He received a salary of

$27,000

for the portion of the year that he worked, tax-exempt interest of

$2,000,

and dividends from domestic corporations of

$3,300.

On

September

1, he began receiving monthly pension payments of

$800

and Social Security payments of

$900.

Assume an exclusion ratio of

40%

for the pension.

Albert

owns a duplex that he rents to others. He received rent of

$15,000

and incurred

$20,000

of expenses related to the duplex. He continued to actively manage the property after he retired from his job.