Clark, a Widower, Maintains a Household for Himself and His

question 27

Multiple Choice

Clark, a widower, maintains a household for himself and his two dependent preschool children. For the year ended December 31, 2019, Clark earned a salary of $32,000. He paid $3,600 to a housekeeper to care for his children in his home, and also paid $1,500 to a kiddie play camp for child care. He had no other income or expenses during 2019. Before considering any limitation due to tax liability, how much can Clark claim as a child and dependent care credit in 2019?

• A)$910
• B)$1,300
• C)$1,326
• D)$5,100
• E)None of these

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Definitions:

Production Function

A mathematical model that describes the relationship between inputs used in production and the resulting output of goods or services.

Input

Resources or factors used in the production process of goods and services, such as labor, capital, and materials.

Production Function

A mathematical model that describes the output generated from combinations of inputs, such as labor and capital.

Expensive

Having a high price or cost, often relative to the value or affordability for the buyer.