D, Whose Parents Are Deceased, Is Supported by Her Grandparents

question 16

Multiple Choice

D, whose parents are deceased, is supported by her grandparents and other relatives.Her support this year was provided as follows: $$\begin{array} { l r } \text { Interest income } & \$ 1,500 \\\text { Social security surv iv or's benefits } & 2,000 \\\text { Contributions by maternal grandparents } & 1,500 \\\text { Contributions by paternal grandparents } & 1,500 \\\text { Contributions by mother's brother } & 1,000 \\\text { Contributions by father's sister } & 600\end{array}$$ Under a multiple support agreement, who may claim a dependency exemption for D?

• A)Any of those listed
• B)Either set of grandparents
• C)Either set of grandparents or the mother's brother
• D)None of those listed because the Social Security benefits and interest income exceed the exemption amount

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Definitions:

Additional Partner

An individual or entity that joins an existing partnership, contributing capital and sharing in the profits and losses.

Contribution

The portion of sales revenue that exceeds variable costs, contributing towards covering fixed costs and generating profit.

Owners' Equity

The residual interest in the assets of a business after deducting liabilities, representing the owners' claims against the company’s resources.

Capital Balances

The amount of money that partners or owners have contributed to a business or the retained earnings within a company.