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14 August, 16:11

Bernie is a former executive who is retired. This year Bernie received $250,000 in pension payments and $10,000 of social security payments. What amount must Bernie include in his gross income?

A.$255,000

B.$258,500

C. Zero

D.$250,000

E.$260,000

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Answers (1)
  1. 14 August, 16:31
    0
    The correct option is B

    Explanation:

    The gross income of Bernie would be

    Individuals include only 85% of the social security benefits in their gross income

    So,

    = $10,000 * 85%

    = $8,500

    Gross Income = Pension Payment + Social Security payment

    = $250,000 + $8,500

    = $258,500

    Therefore, the amount of $258,500 would be the gross income of Bernie.
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