Justin,age 42 and Divorced,is the Sole Support of His Mother,age

question 20

Multiple Choice

Justin,age 42 and divorced,is the sole support of his mother,age 69,who resided in a local nursing home for the entire year.Justin's mother had no income for the year.Justin's filing status and the number of exemptions he can claim are:

• A)Single and 1 exemption
• B)Single and 2 exemptions
• C)Head of household and 1 exemption
• D)Head of household and 2 exemptions

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Definitions:

Stockholders' Equity

The portion of a company's assets that belongs to shareholders after deducting liabilities, representing ownership interest.

Common Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the company's profits or losses.

Retained Earnings

The segment of net profit held back by the business rather than being shared with its proprietors in the form of dividends.

Deferred Revenue

Income that has been received by a company for goods or services not yet delivered or performed, recognized as a liability on the balance sheet.