Kevin and Sue Have Two Children, Ages 8 and 14

question 40

Multiple Choice

Kevin and Sue have two children, ages 8 and 14. They spend $6,200 per year on eligible employment related expenses for the care of their children after school. Kevin earned a salary of $20,000 and Sue earned a salary of $18,000. What is the amount of the credit for child and dependent care expenses?

• A) $690
• B) $713
• C) $1,380
• D) $1,426

---

Definitions:

Compromise Policy

A policy approach that seeks a middle ground or mutual concessions among different interests or positions.

Constant Dividends

Dividend payments that are expected to remain at a fixed rate over time regardless of changes in the company's earnings or profitability.

Selling Equity

Entails a company offering a portion of its ownership to investors in exchange for capital.

Compromise Policy

A strategy that aims to find a middle ground among differing opinions or conditions in policy-making.