Rhianna and Jay Are Married Filing Jointly in 2018

question 8

Multiple Choice

Rhianna and Jay are married filing jointly in 2018. They have six children under age 17 for whom they may claim the child tax credit. Their AGI was $419,400. What amount of child tax credit may they claim on their 2018 tax return?

• A) $12,000
• B) $11,050
• C) $11,000
• D) $6,000

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Definitions:

Accounting Guidelines

Established principles and standards that govern financial reporting and bookkeeping practices.

Cost Method

A method of accounting where the investment is recorded at its acquisition cost, without subsequent change to market value.

Equity Method

An accounting technique used for recording investments in associate companies where the investment is initially recorded at cost and adjusted thereafter for the post-acquisition change in the investor's share of net assets of the investee.

Stock Investments-Long

Investments in stock securities intended to be held for a long-term period for capital appreciation, dividend income, or both.