Problem

An estate has the following income: Rental income$5,000Interest income3,000Dividend inco...

An estate has the following income:

Rental income

$5,000

Interest income

3,000

Dividend income

1,000

The interest income was immediately conveyed to the appropriate beneficiary. The dividends were given to charity as per the decedent’s will. What is the taxable income of the estate?

a. $4,400.

b. $5,000.

c. $8,000.

d. $8,400.

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