Danny Liu is 20 years old and is considered a dependent of his parents for tax purposes.

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Danny Liu is 20 years old and is considered a dependent of his parents for tax purposes. Compute Danny's taxable income in each of the following cases.

a. Danny's only income item was $2,712 interest earned on a certificate of deposit.

b. Danny had two income items: $2,712 interest earned on a certificate of deposit and $3,276 wages from a part-time job.

c. How would your answers change if Danny were not considered a dependent of his parents for tax purposes?

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Principles Of Taxation For Business And Investment Planning 2019 Edition

ISBN: 9781260161472

22nd Edition

Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan

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Question Posted: Jan 21, 2019 11:27 AM

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Danny Liu is 20 years old and is considered a dependent of his parents for tax purposes.

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a AGI 2712 Standard deduction limited 1050 Taxable income 1662 b AGI 5988 Standa...View the full answer

Principles Of Taxation For Business And Investment Planning 2019 Edition

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