1. Mary is single and 45 years old. She pays for all of the costs of

maintaining her household for the year. In order to enroll in a

better school district, her niece, Brooklyn, who is 16 years old,

began living with her in September of the current year. Brooklyn

earns $4,500 a year as a cashier at a grocery store, but Mary pays

for 90% of Brooklyn's living expenses. What is Mary's filing status

for the year?

A. Married Filing Jointly

B. Head of Household

C. Single

D. Married Filing Separately

2. Use the following information to answer questions 2 & 3

Dan and Emily are married and under the age of 65, and have

two children under the age of 5. Dan is a manager at a large

accounting firm and, during 2019, earns a salary of $85,000, with

$13,000 withheld for federal income taxes from his paycheck.

Emily works as a teacher and earns $45,000 during 2019, with

$10,000 withheld from her paycheck for federal income taxes.

Dan and Emily have $4,500 of expenses that are deductible as

"FOR AGI" deductions and $11,000 of itemized deductions for

2019. Dan and Emily file a joint tax return. Assume Dan and Emily

pay tax a flat rate of 30%. Ignore tax credits.

What is their adjusted gross income (AGI)?

A. $45,000

B. $125,500

C. $85,000

D. None of the above

3. What is their taxable income?

A. $101,100

B. $114,500

C. $91,500

D. $125,500