Meredith, Age 14, Earns Wages of $2,100 from Her Modeling

question 73

Multiple Choice

Meredith, age 14, earns wages of $2,100 from her modeling. Since the funds are collected by Meredith's father and used for some of Meredith's living expenses, her father intends to include it in his gross income.
I.The person that actually earns the income will recognize it, Meredith in this case.
II.The Assignment of Income Doctrine prohibits the father from recognizing the $2,100.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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