Harry and Wilma Are Married and File a Joint Income

question 12

Multiple Choice

Harry and Wilma are married and file a joint income tax return.On their tax return, they report $44,000 of adjusted gross income ($20,000 salary earned by Harry and $24,000 salary earned by Wilma) and claim two exemptions for their dependent children.During the year, they pay the following amounts to care for their 4-year old son and 6-year old daughter while they work. $\begin{array}{lr}\text { ABC Day Care Center } & \$ 3,200 \\\text { Blue Ridge Housekeeping Services } & 2,000 \\\text { Mrs. Mason (Harry's mother) } & 1,000\end{array}$ ? Harry and Wilma may claim a credit for child and dependent care expenses of:

• A)$840.
• B)$1,040.
• C)$1,200.
• D)$1,240.
• E)None of the above.

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Definitions:

Ratio

A mathematical expression that compares two numbers by division, indicating how much of one value there is compared to another.

Share Holdings

Ownership of a portion of a company through possession of its stock.

Lowest Terms

A fraction simplified to its most basic form, where the numerator and denominator are the smallest possible integers.

Ratio

A numerical ratio representing how often one number can be divided by another, showing either how many times one is included in the other or vice versa.