38.

Form 1040 Schedules. Determine which of Schedules 1 through 3 the taxpayer(s) will filewith Form 1040 for each case:

a. Abby and Bert are married, file a joint tax return, and have two qualifying children (ages4 and 8). Their only income is $70,000 of salaries and wages, from which $4,500 of federal income taxes are withheld. They claim the standard deduction and child care credit.

b. Celeste is a full-time college student and a qualifying child of her parents. Her onlyincome is $7,500 of wages from a part-time job. She claims the standard deduction.

c. Donna and Ernie (ages 64 and 67) are married, file a joint tax return, and have no dependents. Donna receives a $125,000 salary for the year, and Ernie receives $45,000of taxable pension benefits. Federal income taxes of $30,000 are withheld. Donna andErnie have $10,000 of qualified dividends and a $4,000 long-term capital gain fromtheir investments. They claim itemized deductions rather than the standard deduction.d. Fiona is age 12 and a dependent of her parents. Her only income is $25,000 of taxableinterest from bonds she inherited from a grandparent. She made $3,100 of estimatedtax payments.