Carl Filed His Tax Return,properly Claiming the Head of Household

question 31

Multiple Choice

Carl filed his tax return,properly claiming the head of household filing status.Carl's employer paid or provided the following to Carl: $$\begin{array} { | l | r | } \hline \text { Wages } & \$ 65,000 \\\hline \text { Fair market value of qualified dependent care services } & 4,000 \\\hline \text { Premiums for } \$ 50,000 \text { qualified group term life insurance } & 500 \\\hline \text { Medical insurance premiums } & 600 \\\hline\end{array}$$ How much of this income should Carl report (assume benefits are provided on a nondiscriminatory basis) ?

• A)$65,000
• B)$69,000
• C)$69,500
• D)$70,100

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Definitions:

Direct Materials

Direct materials refer to raw materials that are directly used in the production of goods, readily traceable to the finished product.

Variable Utilities

A classification of utility costs that change in relation to production volume or operational activity.

Human Behavior

The study of how individuals act within societies, influenced by factors such as emotions, culture, and environment.

Budgetary Slack

The practice of underestimating revenues or overestimating costs when preparing a budget to create a buffer.