In 2012,Leo's Wife Died

question 111

Multiple Choice

In 2012,Leo's wife died.Leo has two small children,ages 2 and 4,living at home whom he supports entirely.Leo does not remarry and is not claimed as a dependent on another's return during any of this period.In 2013,2014,and 2015,Leo's most advantageous filing status is,respectively

• A)single for all three years.
• B)head of household for all three years.
• C)surviving spouse,surviving spouse,head of household.
• D)surviving spouse,surviving spouse,single.

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Definitions:

Principal Repayment

The process of paying back the original amount of money borrowed, excluding interest, in a loan or bond.

Fixed-Rate Mortgage

A mortgage loan that has a fixed interest rate for the entire term of the loan, protecting borrowers from rising interest rates.

Principal Payments

Payments made on a loan that reduce the remaining balance of the principal amount borrowed.

Outstanding Balance

The outstanding balance is the amount of debt, or loan, that remains to be paid off.