Max and Alexandra Are Married and Incur $5,500 of Qualifying

question 88

Multiple Choice

Max and Alexandra are married and incur $5,500 of qualifying expenses to care for their two children,ages 2 and 5.Max's earned income is $35,000 and Alexandra's earnings from a part-time job are $5,000.What is the amount of the qualifying expenses for purposes of computing the child and dependent care credit?

• A)$3,000
• B)$5,000
• C)$5,500
• D)$6,000

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Definitions:

Marginal Revenue

The additional income from selling one more unit of a good; sometimes equals the price of the good.

Marginal Cost

The additional cost incurred from manufacturing or producing one more unit of a specific product or service.

Profit Maximizing

A financial strategy or goal of businesses to achieve the highest possible profit, where marginal revenue equals marginal cost.

Marginal Revenue

The additional revenue a firm gains from selling one more unit of a good or service.