A Taxpayer Who Is Claimed as a Dependent on Another's

question 42

True/False

A taxpayer who is claimed as a dependent on another's tax return may not claim any personal or dependency exemptions on his or her tax return.

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Definitions:

Bonds

Long-term debt securities issued by corporations or governments to raise capital, paying interest to holders.

Premium

A term that records the sale of stock at more than par value. In this book we use the account Paid-In Capital in Excess of Par to record the premium received.

Discount

A reduction in the price of goods or services, often used as a sales promotion or to encourage early payment.

Bonds Payable

A long-term liability account that records the amounts owed by a company to bondholders, to be repaid at a future date.