Kobe Is a Single Dad with Two Dependent Children,Lizzie,age 7

question 132

Multiple Choice

Kobe is a single dad with two dependent children,Lizzie,age 7 and Leslie,age 3.He has AGI of $51,000 and paid $3,700 to a qualified day care center.What amount of credit can Kobe receive for the child and dependent care credit?

• A)$0.
• B)$740.
• C)$3,700.
• D)$10,200.

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Definitions:

Current Liability

Short-term financial obligations that are due within one year or within a normal operating cycle.

Bank Indebtedness

The amount of debt owed to banks by an individual or corporation, typically arising from loans or overdrafts.

Payroll Liabilities

Financial obligations related to employee compensation, including owed wages, salaries, and other benefits, which a company must pay.

CPP Contributions

Payments made into the Canada Pension Plan by workers and employers to fund future retirement, disability, or survivor benefits.