Last year Lenny had an annual earned income of \( \$ 58,475 \). He also had passive income of \( \$ 1,255 \), and capital gains of \( \$ 2,350 \). What was Lenny's total gross income for the year? a. \( \$ 58,475 \) b. \( \$ 59,730 \) c. \( \$ 60,985 \) d. \( \$ 62,080 \)

To find Lenny's total gross income for the year, you simply add all sources of income together. So, you would sum his annual earned income (\$58,475), his passive income (\$1,255), and his capital gains (\$2,350): \[ 58,475 + 1,255 + 2,350 = 62,080 \] Therefore, the correct answer is \( d. \, \$ 62,080 \). Now, let’s break this down a bit more. Understanding how different types of income work can help you in financial planning! Tax rules can get tricky, and knowing how to categorize your income correctly is vital. Earned income, passive income, and capital gains are treated differently when it comes to taxation. This means that while you want to know your total gross income for budgeting, it's also important to keep track of these categories for tax deductions and potential benefits come tax time!