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For each situation below, compute the childs taxable income and the amounts that would be taxed at the childs rates and the parents for the
For each situation below, compute the childs taxable income and the amounts that would be taxed at the childs rates and the parents for the 2021 tax year.
a) L, age 13, works in his fathers music store on weekends. During the year, he earned $1,200 from this job. In addition, L had $2,500 of interest income attributable to a gift from his grandfather.
b) Same as (a) except Ls earned income was $6,600 and interest income was $2,850.
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