In 2017, Sheryl is claimed as a dependent on her parent's tax return. Her parents' ordinary income

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In 2017, Sheryl is claimed as a dependent on her parent's tax return. Her parents' ordinary income marginal tax rate is 35%. Sheryl did not provide more than half her own support. What is Sheryl's tax liability for the year in each of the following alternative circumstances?
a. She received $7,000 from a part-time job. This was her only source of income. She is 16 years old at year-end.
b. She received $7,000 of interest income from corporate bonds she received several years ago. This is her only source of income. She is 16 years old at year-end.
c. She received $7,000 of interest income from corporate bonds she received several years ago. This is her only source of income. She is 20 years old at year-end and is a full-time student.
d. She received $7,000 of qualified dividend income. This is her only source of income. She is 16 years old at year-end.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Essentials Of Federal Taxation 2018

ISBN: 9781260007640

9th Edition

Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

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