In Which of the Following Situations Will the Divorced Custodial

question 29

Multiple Choice

In which of the following situations will the divorced custodial parent be entitled to the dependency exemption for the child?

• A) fte noncustodial parent provides $1,500 of support for the child and the custodial parent provides $1,200.
• B) fte custodial and noncustodial parent both provide $1,500 of support for the child.
• C) fte custodial parent provides $1,500 of support for the child and the noncustodial parent provides $1,200.
• D) All of the above.

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Definitions:

Cash Equivalents

Investments of a short-term nature that are both easily converted into precise cash amounts and carry a minimal risk of fluctuating in value.

IFRS

Stands for International Financial Reporting Standards, which are designed to make company accounts understandable and comparable across international boundaries.

Highly Liquid Investments

Investments that can easily and quickly be converted into cash with little loss of value.

Petty Cash Fund

A modest sum of money held in reserve for small or unplanned expenses.