Brian Is 60 Years Old, Single, and Legally Blind

question 42

Multiple Choice

Brian is 60 years old, single, and legally blind.Brian supports his father, who is 88 years old and blind, by paying the rent and other costs of his father's residence.What is the total standard deduction amount that Brian should claim on his 2018 tax return?

• A)$18,000
• B)$24,000
• C)$19,600
• D)$13,600
• E)None of the above

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Definitions:

Diluted Earnings

Earnings per share (EPS) calculated using the maximum potential number of shares that could be outstanding if all sources of conversion, such as convertible bonds or employee stock options, are exercised.

Marginal Income Tax Rate

The percentage of tax applied to your income for each tax bracket in which you qualify, essentially the rate at which the last dollar of your income is taxed.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, giving more weight to some numbers than others.

Basic Earnings

The net income earned by a company divided by the number of outstanding shares, providing a measure of the company’s profitability on a per-share basis.