Terri, age 16, is claimed as a dependent on her parents' 2014 return. During the year, Terri

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Terri, age 16, is claimed as a dependent on her parents' 2014 return. During the year, Terri earned $5,000 in interest income and $3,000 from part-time jobs.

a. What is Terri's taxable income?

b. How much of Terri's income is taxed at her rate? At her parents' rate?

c. Can the parental election be made? Why or why not?

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South Western Federal Taxation 2015 Essentials Of Taxation Individuals And Business Entities

ISBN: 9781285438290

18th Edition

Authors: James Smith, William Raabe, David Maloney, James Young

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Question Posted: May 25, 2015 06:28 AM

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Terri, age 16, is claimed as a dependent on her parents' 2014 return. During the year, Terri

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a Earned income 3000 Interest income 5000 Gross income and AGI 8000 Less Standa...View the full answer

South Western Federal Taxation 2015 Essentials Of Taxation Individuals And Business Entities

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