Montague (Age 15)is Claimed as a Dependent by His Parents

question 63

Multiple Choice

Montague (age 15) is claimed as a dependent by his parents, Matt and Mary.In 2019, Montague received $5,000 of qualified dividends, and he received $800 from a part-time job.What is his taxable income for 2019?

• A)$0
• B)$3,900
• C)$4,650
• D)$4,750

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Definitions:

Net Present Value

A financial metric used to assess the profitability of an investment, calculating the difference between the present value of cash inflows and outflows over a period.

Internal Rate

Often refers to the internal rate of return (IRR), a metric used to evaluate the profitability of potential investments.

Investment Project

A project or activity requiring capital expenditure with the expectation of generating financial returns over time.

Discount Factor

A multiplier used in discounting to calculate the present value of future cash flows or earnings.