Question

The Martins filed a joint return for 2020. They provide more than 50% of the support of Clover, Broderick, and Dwayne. Clover (age 18) is a cousin and earns $5,000 from a part-time job. Broderick (age 25) is their son and is a full-time law student. He received from the university a $3,800 scholarship for tuition. Dwayne is a brother who is a citizen of Israel but resides in France. Clover and Broderick live with the Martins. How many dependency exemptions do the Martins have?

a.2

b.4

c.3

d.5

e.1

A net capital gain occurs if the:

a.Net long-term capital gain exceeds the net short-term capital loss.

b.Net long-term capital gain exceeds the net long-term capital loss.

c.Net short-term capital gain exceeds the net short-term capital loss.

d.Net short-term capital loss exceeds the net long-term capital gain.

e.Net long-term capital loss exceeds the net short-term capital loss.

apital assets are defined in the Code as any property held by the taxpayer other than certain items including:

a.Inventory, accounts receivable, and depreciable property used in a business.

b.Accounts payable and depreciable property or real estate used in a business.

c.Inventory, accounts payable, and depreciable property used in a business.

d.Inventory, accounts receivable, and intangible assets used in a business.

e.Accounts receivable, long-term investments, and depreciable property used in a business.

The rates in the Tax Rate Schedules are often referred to as:

a.Statutory.

b.Computational.

c.Marginal.

d.Regulatory.

e.Average.

anice, age 16 and single, is claimed as a dependent on her parent's tax return. During 2020, she had earned income of $900 from a summer job and had no unearned income. Her standard deduction is:

a.$0.

b.The greater of $1,100 or ($900 earned income + $350).

c.$350.

d.The greater of $1,100 or ($900 earned income – $350).

e.The lesser of $1,100 or ($900 earned income + $350).

Answer 1

1. The correct answer is Option c 3

Due to gross income Clover does not qualify as a relative , Broderik is also not qualified for child due to age of 24, but as type of scholarship he received is not taxabale , he qualified for gross income test and Dwayne who is citizen of israel, does not sastisfies residency requirement and also citizenship requirement.

So Martins can claim in total three exemptions , Which consists one dependency exemption and two personal exemptions.