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Tony Supports the Following Individuals During the Current Year: Miranda,his

question 71

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Tony supports the following individuals during the current year: Miranda,his former mother-in-law who lives in her own home and has no gross income; his cousin,Jeff,age 23,who is a full-time student,earns $7,000 during the year,and lives with Tony all year long; and Matt,age 22,who is Tony's brother,is a full-time student living on campus and earns $8,000 during the year.How many dependency exemptions may Tony claim?


Definitions:

Purchase Price

The amount of money that is required to buy something.

Incorporation

The process of legally declaring a corporate entity to be separate from its owners, thereby providing limited liability and other benefits.

Capacity to Contract

The legal ability of an individual or entity to enter into a binding contract, having the necessary age, mental state, and authority.

Intoxicated

A state of impairment or being under the influence of alcohol or drugs, which can affect a person's physical and cognitive abilities.

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