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5

Accounting Jun 24, 2020

5. Hunter, age 17, is claimed as a dependent on his parents' tax return. He earned $15,000 appearing in television commercials. Compute his allowable standard deduction. This is an open-ended question.

 

 

 

6. Mr. and Mrs. Anderson file a joint return. Bruce is the Anderson's 18-year-old son. During the year he had income of $5,500 from prizes/awards won at livestock shows. Arnold is the Anderson's 3-year-old son. Arnold earned $12,000 from personal appearances. They provide more than 50% of the support for Bruce and Arnold. How much child tax credit, in any, and how much other dependent tax credit, if any, are the Anderson's entitled to on their tax return if they file married filing jointly? This is an open-ended question.

 

7. Imogene is 35 years old and unmarried. She has adopted her ten-year old niece, who lives with the taxpayer, and provides 100% of her financial support. Imogene also provides 60% of financial support for her aging mother who lives in a nursing home, who has no income. How much child tax credit, if any, and how much dependent tax credit, if any, would Imogene be entitled to receive? This is an open-ended question. 

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