Ryan and Edith File a Joint Return Showing $420,000 of AGI.They

question 50

Multiple Choice

Ryan and Edith file a joint return showing $420,000 of AGI.They have three dependent children ages 7,9,and 13.What is the amount of their child credit?

• A)$0
• B)$2,000
• C)$5,000
• D)$6,000

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Definitions:

Maturity

The date on which a financial obligation must be repaid in full.

Zero-Coupon Bond

A debt security that does not pay interest but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its full face value.

Imputed Interest

The interest on a loan that the IRS assumes was paid for tax purposes, even if no actual interest payment was made.

Required Return

The smallest yield an investor aims to receive from an investment, factoring in its risk profile.