Denice Is Divorced and Files a Single Tax Return Claiming

question 34

Multiple Choice

Denice is divorced and files a single tax return claiming her two children,ages 7 and 9,as dependents.Her AGI for 2013 is $79,500.Denice's Child Credit for 2013 is:

• A)$2,000
• B)$250
• C)$1,000
• D)$750
• E)$1,750

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Definitions:

Zero Sum Game

A situation in which the gain of one party is exactly matched by the loss of another party, indicating that no net wealth is created or destroyed in the transaction.

Contract

A legally binding agreement between two or more parties that outlines duties, rights, and obligations.

Money

A medium of exchange that is authorized or adopted by a government as part of its currency.

Futures Contract

A binding contract that stipulates the buying or selling of a certain financial instrument or commodity at a price fixed in advance, with the transaction to be executed at a predetermined future time.