Question

1----pedro, who is a dependent of another taxpayer for the year, earned $1,000 in interest income and $1,500 from a part-time job. pedros standard deduction for the year will be $1,100. true or false

2----pedro and Susan are a married couple with three dependent children. During the year, S dies and T does not remarry. Determine T's filing status for the year.

3--- In 2017, T purchased a parcel of real property for $350,000 using $25,000 in cash and $325,000 in funds borrowed from Bank. In 2019, the value of the property had declined to $250,000 and T still owed $325,000 to Bank. T has no other assets or liabilities. As a result of the decline in value of the property, Bank agreed to reduce the amount due on the loan to $295,000. Determine the amount T must include in gross income as a result of the debt forgiveness.

4) T and S, a married couple, have one daughter, D, who is 20 years old and a full-time student living away in the dorm. D's total support for the year is $33,000. D pays $12,000 of her own support with earnings from a part-time job. In addition, D uses a $5,000 scholarship toward her own support. T and S pay the remainder of D's support. Select the correct statement.

D is neither a qualifying child nor qualifying relative of T and S

D is a qualifying child of T and S

D is a qualifying relative of T and S

Answer 1

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