Which of the Following Statements Regarding the Difference Between the Requirements

question 123

Multiple Choice

Which of the following statements regarding the difference between the requirements for a qualifying child and the requirements for a qualifying relative is False?

• A) The relationship requirement is more broadly defined (more inclusive) for qualifying relatives than for qualifying children.
• B) Qualifying children are subject to age restrictions while qualifying relatives are not.
• C) The support test for qualifying relatives focuses on the support the potential dependent self-provides while the support test for qualifying children focuses on the support the taxpayer provides.
• D) Qualifying relatives are subject to a gross income restriction while qualifying children are not.

---

Definitions:

Market Value

The current price at which an asset or service can be bought or sold in a marketplace.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Floating-Rate Bonds

Debt securities where the interest payments fluctuate with market interest rates rather than being fixed, potentially offering less predictable returns.

E-Commerce

The buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions.