In Which of the Following Situations, If Any, Will the Kiddie

question 24

Multiple Choice

In which of the following situations, if any, will the kiddie tax not apply?

• A)The child is married but does not file a joint return.
• B)The child has unearned income of $2,100 or less.
• C)The child has unearned income that exceeds more than half of his (or her) support.
• D)The child is under age 24 and a full-time student.
• E)None of these.

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Definitions:

Acquisition

The process by which one company takes over controlling interest in another company.

Merger Premium

The additional amount paid over the current market value of a company during a merger or acquisition.

Shares Outstanding

The total number of a company's shares that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Market Price

The price at which an asset or service is currently being traded in the marketplace.