Mr and Mrs Lansing, Who File a Joint Tax Return

question 83

Multiple Choice

Mr and Mrs Lansing, who file a joint tax return, have four dependent children under age 17. Which of the following statements is false?

• A) If the Lansings' AGI is $77,900, their child credit is $8,000.
• B) If the Lansings' AGI is $417,300, their child credit is $7,100.
• C) If the Lansings' AGI is $596,000, their child credit is zero.
• D) None of the above is false.

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Definitions:

Risk

The potential for losses or less-than-expected returns, present in all types of investments and business activities.

Uncertainty

The state of having limited knowledge where it is impossible to exactly describe the existing state, a future outcome, or more than one possible outcome.

Investing Activities

Activities involving the buying and selling of long-term assets and investments, excluding those considered as cash equivalents.

Financing Activities

Activities that result in changes in the size and composition of the contributed equity and borrowings of an entity, often reflected on the cash flow statement.