Hunter, Age 17, Is Claimed as a Dependent on His

question 44

Multiple Choice

Hunter, age 17, is claimed as a dependent on his parents' tax return. This year, Hunter earned $8,500 for appearing in a television commercial. Compute Hunter's standard deduction.

• A) $1,050
• B) $8,500
• C) $6,300
• D) $0

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Definitions:

Adjusting Entry

An entry made at the end of an accounting period to allocate revenues and expenses to the correct period.

Annual Rent

The total amount of money paid for the use of property or equipment for a year.

Adjusting Entries

Documentation made at the culmination of an accounting period, aiming to allocate revenues and expenses to the correct timeframe of their occurrence.

Fiscal Year

A one-year period used for financial reporting and budgeting, which may not align with the calendar year.