LO.2 Determine the amount of the standard deduction allowed for 2010 in the following independent situations. In

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LO.2 Determine the amount of the standard deduction allowed for 2010 in the following independent situations. In each case, assume the taxpayer is claimed as another person’s dependent.

a. Edward, age 18, has income as follows: $600 interest from a certificate of deposit and

$6,000 from repairing cars.

b. Sarah, age 18, has income as follows: $400 cash dividends from a stock investment and $3,600 from handling a paper route.

c. Colin, age 16, has income as follows: $900 interest on a bank savings account and

$700 for painting a neighbor’s fence.

d. Kara, age 15, has income as follows: $300 cash dividends from a stock investment and

$600 from grooming pets.

e. Kay, age 67 and a widow, has income as follows: $400 from a bank savings account and $3,000 from baby-sitting.

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South Western Federal Taxation 2011 Taxation Of Business Entities

ISBN: 9780538498616

14th Edition

Authors: James E. Smith, William A. Raabe, David M. Maloney

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