Keith,age 17,is a Dependent of His Parents

question 18

Multiple Choice

Keith,age 17,is a dependent of his parents.During 2017,he received $3,000 of dividend income.The parent's marginal rate is 28% and Keith's rate is 10%.Keith's tax is

• A)$292.50.
• B)$130
• C)$357.
• D)None of the above.

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Definitions:

Carrying Costs

The total cost of holding inventory, including storage, insurance, spoilage, and opportunity costs.

Shortage Costs

Costs incurred from not having enough inventory to meet demand, including lost sales and customer dissatisfaction.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the normal operating cycle, whichever is longer.

Accounts Receivable Period

The average amount of time that it takes for a company to receive payments owed by its customers.