27. Hossain, age 14, is a dependent of his parents. In 2021 he earned $5,000 from a part-time job and $8,000 of interest income on bonds given him by his grandparents, resulting in taxable income of $7,650. Under kiddie tax rules, calculation of tax requires dividing taxable income between net unearned income and other taxable income taxed at his own rate. Hossain's taxable income will be divided as follows A) net unearned income -$5,800 and earned taxable income -$1,850. B) net unearned income -$7,650 and earned taxable income -$0. C) net unearned income -$0 and earned taxable income -$7,650. D) net unearned income -$1,850 and earned taxable income -$5,800. 28. Shaquille is eight years old, and the son of parents in the 37% tax bracket. His only source of taxable income comes from a corporate bond fund received as a gift from her grandparents last year. For 2021, Shaquille earned $9,000 of interest income from this fund. What is Shaquille's federal income tax liability? A) $680 B) $2,923 C) $2,626 D) $790 29. A corporation has revenue of $350,000 and deductible business expenses of $240,000. What is the federal income tax, before credits? A) $26,400 B) $22,000 C) $23,100 D) $38,500 30. Tatiana is starting a new business with a friend and trying to decide between a C corporation, S corporation, and partnership. Which of the following statements regarding her decision is correct? A) An S corporation owner must pay income taxes only on the salary received. B) A partner in a partnership is taxed on his or her share of partnership income. C) A shareholder in a C corporation is taxed on his or her share of corporate income. D) S corporations pay taxes on their current year income. 31. Married couples will normally file jointly. Identify a situation where a married couple may prefer to file separately. A) The spouse with lower income has substantial medical expenses. B) A couple is separated and contemplating divorce. C) One spouse can be held responsible for the entire tax liability. D) All of the above