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7) Cher and Ross Gregg have one daughter, Sally, who is 16 years old. In November of last year, the Greggs took in Sally's 16-year-old
7) Cher and Ross Gregg have one daughter, Sally, who is 16 years old. In November of last year, the Greggs took in Sally's 16-year-old friend Angie, who has lived with them ever since. The Greggs have not legally adopted Angie but Sally often refers to Angie as her "sister." The Greggs provide all of the support for both girls, neither girl receives any income during the year, and both girls live at the Greggs' residence Which of the following statements is true regarding whom Cher and Ross may claim as dependents for the current year? A. They may claim Sally as a dependent qualifying child and they may claim Angie as a dependent qualifying relative. B. None of these statements are true. C. They may claim Sally as a dependent qualifying child; they are not allowed to claim Angie as a dependent D. They may claim Sally as a dependent qualifying child and they may claim Angie as a| dependent qualifying child. 8) Aya bought 1,000 shares of Smile Corporation stock for $6,100 on January 17, 2017. On December 31, 2019, Aya sold all 1,000 shares of her Smile stock for $5,050. Based on a tip from her friend, Aya bought 1,000 shares of Smile stock on January 22, 2020, for $3,275. What is Aya's recognized loss on her 2019 sale, and what is the basis in the 1,000 shares purchased in 2020, respectively? A. $630 LTCL and $3,695 basis. B. $420 LTCL and $3,905 basis. C. $1,050 LTCL and $3,275 basis. D. $840 LTCL and $3,485 basis. E. S-0- LTCL and $4,325 basis. 9) Angelena, a head of household, reported $53,550 of taxable income in 2019, including a $10,300 qualified dividend. What is Angelena's gross tax liability, rounded to the nearest whole dollar amount? A. $6,163 B. $6,413 C. $4,913 D. $5,033
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