The Amount of the Kiddie Tax Is the Sum of

question 52

Multiple Choice

The amount of the kiddie tax is the sum of

• A)the child's tax on the child's earned income and the tax on all the child's unearned income at the parents' rates.
• B)the parents' tax on the child's unearned income and the child's tax on the earned income.
• C)the parent's tax on the child's unearned income in excess of $2,000 and the child's tax on the balance of his or her taxable income.
• D)$1,000 or the tax on unearned income.
• E)None of the above.

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Definitions:

Cost of Goods Sold

The specific costs incurred in the making of goods that a company sells, which include materials and labor.

Schedule

A structured plan that outlines the times at which certain tasks, events, or activities are intended to occur.

Underapplied Manufacturing Overhead

The condition in which the manufacturing overhead costs assigned are lower than the real overhead costs that have been incurred.

Overapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead costs are more than the actual overhead costs incurred.