The Martins filed a joint return for 2020. They provide more than 50% of the support of
Question:
The Martins filed a joint return for 2020. They provide more than 50% of the support of Clover, Broderick, and Dwayne. Clover (age 18) is a cousin and earns $5,000 from a part-time job. Broderick (age 25) is their son and is a full-time law student. He received from the university a $3,800 scholarship for tuition. Dwayne is a brother who is a citizen of Israel but resides in France. Clover and Broderick live with the Martins. How many dependency exemptions do the Martins have?
a.2
b.4
c.3
d.5
e.1
A net capital gain occurs if the:
a.Net long-term capital gain exceeds the net short-term capital loss.
b.Net long-term capital gain exceeds the net long-term capital loss.
c.Net short-term capital gain exceeds the net short-term capital loss.
d.Net short-term capital loss exceeds the net long-term capital gain.
e.Net long-term capital loss exceeds the net short-term capital loss.
apital assets are defined in the Code as any property held by the taxpayer other than certain items including:
a.Inventory, accounts receivable, and depreciable property used in a business.
b.Accounts payable and depreciable property or real estate used in a business.
c.Inventory, accounts payable, and depreciable property used in a business.
d.Inventory, accounts receivable, and intangible assets used in a business.
e.Accounts receivable, long-term investments, and depreciable property used in a business.
The rates in the Tax Rate Schedules are often referred to as:
a.Statutory.
b.Computational.
c.Marginal.
d.Regulatory.
e.Average.
anice, age 16 and single, is claimed as a dependent on her parent's tax return. During 2020, she had earned income of $900 from a summer job and had no unearned income. Her standard deduction is:
a.$0.
b.The greater of $1,100 or ($900 earned income + $350).
c.$350.
d.The greater of $1,100 or ($900 earned income – $350).
e.The lesser of $1,100 or ($900 earned income + $350).
Expert Answer:
1 The correct answer is Option c 3 Due to gross income Clover does not qualify as a relative ... View the full answer
