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

question 1724

Multiple Choice

Carl filed his tax return, properly claiming the head of household filing status. Carl's employer paid or provided following to Carl: How much of this income should Carl report (assume benefits are provided on a nondiscriminatory basis) ?

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

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Definitions:

Security Interests

A lawful demand or security interest on assets that have been offered as a guarantee, typically to ensure the repayment of a borrowed sum.

Time of Perfection

The point at which a security interest is legally established against third parties, typically by filing or possession.

Time of Attachment

The point at which an interest, typically a security interest, becomes legally binding on the asset to which it attaches.

Right of Redemption

A legal right that allows a debtor to reclaim their property or mortgaged estate after paying off their debts, even after foreclosure.