Question
I need help with the questions below, please 1. Jesse has his retired father-in-law, Vick, living with him and his wife Sue for the past
I need help with the questions below, please
1. Jesse has his retired father-in-law, Vick, living with him and his wife Sue for the past three years and they provide approximately 90% of Vicks support each year. Vick has $2,400 of gross income. Which of the following statements is accurate regarding Vicks dependency status?
a) Vick cannot be claimed as a dependent based on his gross income
b) Vick fails the relationship test and is not a qualifying relative
c) Jesse and Sue only provide 90% of Vicks support and in order to meet the qualifying relative test they must provide 100%
d) Since Vick lives with Jesse and Sue full time, they provide more than half his support, and his income is less than $4,000, he can be claimed as a dependent based on the qualifying relative test
2. A group of business associates comes from out of town to Gregs place of business to hold a substantial business discussion. Greg takes his associates out to dinner the evening before the business discussion and spends $400. What amount can Greg deduct as a cost of business entertainment expense?
a) $0
b) $100
c) $200
d) $300
3. Lucia received $2,000 cash under her employers dependent care plan for 2016. The $2,000 is shown in box 10 of her Form W-2. She incurred $900 of qualified expenses in 2016 for the care of her 3-year-old dependent child. When claiming the Credit for Child and Dependent Care Expenses what amount should she report for dependent care benefits on Line 13 of her Form 3506?
a) $0
b) $900
c) $1,100
d) $2,000
4. Audrey claimed $2,100 on her Federal tax return for her Child and Dependent Care Expenses Credit. Her Federal AGI was $32,750 and she meets all other requirements. What amount can she claim for the California Child and Dependent Care Expenses (CDC) Credit?
a) $0
b) $700
c) $1,050
d) $1,400
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