Which of the Following Individuals Can Be Claimed as a Dependent

question 41

Multiple Choice

Which of the following individuals can be claimed as a dependent in the current year? (Assume any test not mentioned has been satisfied) .
I.Carl and Diane are divorced. Carl has custody of their 6-year-old son. Diane pays Carl $500 per month in child support. Carl pays the other $400 per month it costs to support their son. The divorce decree does not stipulate who gets custody of the son. Carl claims his son as a dependent.
II.Lorraine is a 25-year-old college student. She lives with her parents, who also provide her with $500 monthly support. Lorraine earns $4,600 working part-time for other support. She may be claimed as a dependent of her parents.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Substitute Checks

Digital or paper reproductions of original checks that are legally equivalent for processing payments.

UCC

A complete collection of regulations that oversee business dealings within the United States, known as the Uniform Commercial Code.

Stop-Payment Order

A request made to a bank by an account holder to not pay out on a check or transaction previously issued or authorized.

Liability

Legal responsibility for one's actions or inactions, particularly in causing harm to others or to property, which may result in civil or criminal penalties.