Hester (Age 17)is Claimed as a Dependent by His Parents

question 72

Multiple Choice

Hester (age 17) is claimed as a dependent by his parents, Charlton and Abigail. In 2020, Hester received $10,000 of qualified dividends, and he received $13,000 from a part-time job. What is his taxable income for 2020? (Standard deduction)

• A)$23,000
• B)$21,900
• C)$10,600
• D)$9,650

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Definitions:

ROA

Return on Assets, a financial ratio indicating the profitability of a company relative to its total assets.

ROE

Return on Equity, a financial ratio that measures the profitability of a business in relation to shareholder's equity.

Fixed Assets

Long-term tangible assets used in the operations of a business that are not expected to be converted into cash in the near future.

Sales Increase

A rise in the volume or value of product units or services sold by a company, indicating growth in business activity.