Jack and Jill are married. This year Jack earned $72,000, Jill earned $80,000, and they received $4,000 of interest income from a joint savings account. How much gross income would Jack report if he files married filing separately from Jill?
A. $72,000 if they reside in a common law state.
B. $74,000 if they reside in a community property law state.
C. $76,000 if they reside in a common law state.
D. $78,000 if they reside in a community property law state.
E. None of the choices are correct.
Answer: D