Bob and Carol File Their Tax Returns Using the Married

question 72

Multiple Choice

Bob and Carol file their tax returns using the married filing jointly status.Their AGI is $131,000.They have two children,ages 11 and 7.How much child tax credit can Bob and Carol claim for their two children?

• A)$2,000
• B)$1,000
• C)$1,050
• D)$950
• E)None of the above is correct

---

Definitions:

Direct Materials

Raw materials that are directly used in the manufacturing of a product and can be easily traced to the finished product.

Direct Labor

The cost of labor that can directly be associated with the production of goods or services.

Overhead

Indirect costs related to production or operations, excluding direct labor and direct materials costs.

Incremental Income

The additional income that is generated by increasing sales or production by one additional unit.