Robert and Mary File a Joint Tax Return for 2013,with $\quad \$ 1,500$

question 74

Multiple Choice

Robert and Mary file a joint tax return for 2013,with adjusted gross income of $33,000.Robert and Mary earned income of $20,000 and $12,000 respectively,during 2013.In order for Mary to be gainfully employed,they pay the following child care expenses for their 4 year-old son,John: Union Day Care Center $\quad \$ 1,500$
Wilma, baby sitter (Robert's mother) $\quad \$ 1,000$ What is the amount of the child and dependent care credit they should report on their tax return for 2013?

• A)$390
• B)$260
• C)$650
• D)$625
• E)None of the above

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Definitions:

Internal Control

Procedures and policies implemented by a company to safeguard its assets, ensure accurate and reliable financial reporting, and comply with laws and regulations.

Cash

Liquid assets that a company or individual has available for transactions.

Bank Reconciliation

The process of ensuring that a company’s bank account balance matches its financial records, identifying discrepancies and making adjustments as necessary.

Internal Controls

Systems and steps a corporation takes to verify the accuracy of financial and accounting reports, encourage responsible behavior, and stop dishonest practices.