Max Moore Is a Widower (His Spouse Died in 2010)

question 11

Multiple Choice

Max Moore is a widower (his spouse died in 2010) and maintains a separate apartment for his father. Max cannot take a dependency exemption for his father because his father's income is $4,000 per year. What is the best filing status for Max for 2012?

• A) Joint return
• B) Surviving spouse
• C) Head of household
• D) Single
• E) None of the above

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Definitions:

Recourse

A provision that allows a lender to seek financial compensation from a borrower if default occurs.

Capital Contributions

Funds or assets contributed to a company or partnership by owners or partners to increase its capital stock or equity.

Net Income

The net income of a company once all costs, taxes, and expenses are deducted from the total revenue.

Personal Use

The use of an asset or product for individual rather than commercial or professional purposes.