Robbie Is 18,and a Dependent on His Parent's Return

question 65

Multiple Choice

Robbie is 18,and a dependent on his parent's return.His income consists of interest of $1,300,and $2,500 from being a lifeguard.If his parent's taxable income is $75,000,what is Robbie's 2013 tax liability?

• A)$ -0-
• B)$ 95
• C)$130
• D)$250
• E)$295

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Definitions:

Investments

The process of distributing funds with the aim of earning returns or profits.

Positive

A term usually referring to values greater than zero, or a positive attitude or outcome in a broad sense.

Expected Value

The weighted average of all possible values of a random variable, with the weights being the probabilities of the outcomes.

Portfolio

A blend of financial contributions, featuring stocks, bonds, market commodities, ready money, and equivalents of cash, comprising also mutual funds and ETFs.