Vincent,age 12,is a Dependent of His Parents

question 47

Multiple Choice

Vincent,age 12,is a dependent of his parents.During 2017,Vincent's earned income from wages is $2,600 and Vincent received $3,000 of interest income.The parent's marginal rate is 28% and Vincent's marginal rate is 10%.Vincent's tax is

• A)$265.
• B)$742.
• C)$412.
• D)None of the above.

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Definitions:

Incremental Annual

Refers to the additional yearly impact or benefits resulting from a specific decision or action.

Payback Period

The length of time required to recover the cost of an investment.

Required Rate

The minimum expected rate of return on an investment, project, or loan, often used in evaluating its viability.

Net Operating Income

A measure of a company's profitability from its core business operations, calculated by subtracting operating expenses from revenue, excluding non-operating items such as interest and taxes.