Michael's Brother, Thomas, Lives with Michael in His Own Home

question 21

Multiple Choice

Michael's brother, Thomas, lives with Michael in his own home. Thomas has a full-time job and pays his brother for rent and utilities. Michael's filing status is

• A) single.
• B) head of household.
• C) married, filing separately.
• D) a qualifying widow(er).

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Definitions:

Dividend Revenue

Income received from owning shares of stock in a company when it distributes a portion of its earnings to shareholders.

Fair Value

The estimated price at which an asset could be bought or sold in a current transaction between willing parties, other than in a liquidation sale.

Equity Method Investments

Investments in which the investor has significant influence, but not control, over the investee, and the investment is accounted for using the equity method, recognizing the investor's share of the investee's profits and losses.

Cash Dividends

A cash distribution of profits by a corporation to its shareholders.