Amanda Black's total unearned income from dividends, taxable interest, and capital gains is what amount?

Study for the 43-Hour Federal Qualifying Education Test. Engage with flashcards and multiple-choice questions, each with hints and explanations. Prepare thoroughly for your exam!

To determine Amanda Black's total unearned income from dividends, taxable interest, and capital gains, it's crucial to understand what constitutes unearned income. Unearned income includes revenue from sources other than employment, such as dividend payments from stocks, interest earned on savings accounts or bonds, and profits generated from selling assets (capital gains).

The correct answer, which states that the total unearned income is $2,600, suggests that the combined income from these sources totals this amount. This figure likely accounts for the specific values associated with the different types of unearned income Amanda has received, reflecting a situation where she has dividends and interest that together add up to a significant portion of her total income, along with capital gains from asset sales.

In the context of the other provided options, if Amanda's total unearned income was less than $2,600, such as $1,100, $1,400, or $3,200, it would imply either a lack of sufficient diversity in her income sources or potentially an overestimation of gains. This highlights the importance of accurately adding up the different streams of unearned income to arrive at the correct total, reinforcing an understanding that total income calculations must consider all relevant income sources.

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