Indicate for Each of the Following the Most Favorable Filing

question 81

Essay

Indicate for each of the following the most favorable filing status for the 2015 tax year.
a.Kenny died on March 2,2014.Marge,his wife,and Bart,their son,survive.Marge filed a joint return in 2014.Bart,age 18 in 2015,is a part-time college student and continues to live at home with his mother.He works part-time,earning $6,200.What is Marge's filing status in 2015?
b.Alan Spaulding is single and provides over 50% support of his niece Alicia who lives with him all year long.Alan maintains the household and claims Alicia as a dependent.Alicia makes $3,600 at a part-time job.She is a full-time student,age 18.What is Alan's filing status?
c.Lily,who was divorced on July 27,2014,provides 100% of the support for her parents who live in a nursing home in Kansas and have no income.What is Lily's filing status?
d.Holly was abandoned by her husband Fletcher in September of the current year.She has not seen or communicated with him since then.What is Holly's filing status?
e.Rick,whose wife died in December 2012,filed a joint tax return for 2012.He did not remarry,but has continued to maintain his home in which his two dependent children live.What is Rick's filing status for 2015?

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Definitions:

Sunk Cost

Costs that have already been incurred and cannot be recovered.

Common Fixed Costs

Common fixed costs refer to expenses that remain constant for a business over a period, regardless of the level of production or sales activity.

Joint Products

Products that are generated together from the same raw materials or production process, where the costs are difficult to allocate to each product individually.

Split-off Point

marks the stage in a production process where multiple products are generated from common inputs, necessitating allocation of costs among the products.