Question
Unearned Income of Minor Children and Certain Students (LO 6.10) Brian and Kim have a 12-year-old child, Stan. For 2016, Brian and Kim have taxable
Unearned Income of Minor Children and Certain Students (LO 6.10) Brian and Kim have a 12-year-old child, Stan. For 2016, Brian and Kim have taxable income of $52,000, and Stan has nonqualifying dividend income of $4,500 and investment expenses of $250. No election is made to include Stan's income on Brian and Kim's return. Click here to access the tax tables.
a. For purposes of the tax on a child's unearned income, calculate Stan's net unearned income.
$ ?
b. Calculate the amount of Stan's tax at his parents' rate. $ ?
c. Calculate Stan's total tax for 2016.
Note: Assume a 10% rate on regular taxable income.
$ ?
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