Question
-Sneha, age 11, is a dependent of his parents. Her only source of income in 2018 is $7,500 of interest income on bonds given her
-Sneha, age 11, is a dependent of his parents. Her only source of income in 2018 is $7,500 of interest income on bonds given her by her grandparents, resulting in taxable income of $6,450. Under kiddie tax rules, calculation of tax requires dividing taxable income between net unearned income and earned taxable income (ETI). Sneha's taxable income will be divided as follows:
A) net unearned income -$5,450 and earned taxable income -$1,050..
B) net unearned income -$5,450 and earned taxable income -$0.
C) net unearned income -$0 and earned taxable income -$5,950.
D) net unearned income -$5,950 and earned taxable income -$1,050.
-Jamal owns 1,500 shares of Green Corporation. This year, Green declared a 5% stock dividend. There was no option for shareholders to receive cash. When Jamal received 75 shares of Green stock, it had a fair market value of $60 a share. How much income does Jamal have from the dividend?
A) $0
B) $50
C) $5,000
D) $50,000
-Francisco purchased an annuity for $60,000 that will pay him $1,000 per month for ten years. What amount should Francisco include in his income each year?
A) $0
B) $6,000
C) $10,000
D) $12,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started