Satish, Age 11, Is a Dependent of His Parents

question 1716

Multiple Choice

Satish, age 11, is a dependent of his parents. His only source of income in 2018 is $8,000 of interest income on bonds given him by his grandparents, resulting in taxable income of $6,950. Under kiddie tax rules, calculation of tax requires dividing taxable income between net unearned income and earned taxable income. Satish's taxable income will be divided as follows:

• A) net unearned income - $6,950 and earned taxable income - $0.
• B) net unearned income - $0 and earned taxable income - $6,950.
• C) net unearned income - $8,000 and earned taxable income - $1,050.
• D) net unearned income - $5,900 and earned taxable income - $1,050.

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Definitions:

Pulled a Knife

The act of producing a knife as a threat or in preparation of using it, often implying aggression or self-defense.

Seclusion

The practice of isolating an individual, often in a psychiatric setting, to prevent harm to themselves or others, typically in a specially designed room.

Escalate Despite

The phenomenon where a situation or conflict becomes increasingly intense or severe even though there are attempts to control or resolve it.

Verbal Intervention

The use of spoken words and communication techniques to prevent or resolve conflicts, often employed in crisis situations.