Marge and Lester File a Joint Tax Return for 2011,with

question 6

Multiple Choice

Marge and Lester file a joint tax return for 2011,with adjusted gross income of $33,000.Marge and Lester earned income of $20,000 and $12,000 respectively,during 2011.In order for Marge to be gainfully employed,they pay the following child care expenses for their 4-year-old son,Kevin: Assuming they do not claim any other credits against their tax,what is the amount of the child and dependent care credit they should report on their tax return for 2011?

• A)$0
• B)$780
• C)$1,250
• D)$1,750
• E)$3,000

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Definitions:

Fixed Component

A portion of a cost that remains constant regardless of the level of production or sales volume, such as rent, salaries, and insurance.

Mixed Cost

A cost composed of a fixed and variable component, changing with the level of activity but also containing a constant element.

Escrows Completed

Typically, the term "escrow" refers to a financial arrangement where a third party holds and regulates the payment of funds required for two parties involved in a given transaction. "Escrows Completed" could refer to transactions that have successfully met their conditions and been finalized, although this is not a standard accounting or financial term.

Variable Cost

Costs that vary directly with the level of production or output.