For Each of the Following Taxpayers Indicate the Applicable Filing

question 81

Essay

For each of the following taxpayers indicate the applicable filing status,the number of personal and dependency exemptions available,and the number of children who qualify for the child credit.
a.Jeffrey is a widower,age 71,who receives a pension of $10,000,nontaxable social security benefits of $12,000,and interest of $2,000.He has no dependents.
b.Selma is a single,full-time college student,age 20,who earned $6,800 working part-time.She has $1,700 of interest income and received $1,000 support from her parents.
c.Olivia is married,but her husband left her three years ago and she has not seen or heard from him since.She supports herself and her six-year-old daughter.She paid all the household expenses.Her income consists of salary of $18,500 and interest of $800.
d.Ruben is a single,full-time college student,age 20,who earned $6,800 working part-time.He has $250 of interest income and received $10,000 support from his parents.
e.Cathy is divorced and received $12,000 alimony from her former husband and earned $35,000 working as an administrative assistant.She also received $2,500 of child support for her daughter who lives with her.Cathy filed the appropriate IRS form and gave up the dependency exemption to her former husband.

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Definitions:

T-Accounts

A visual representation of individual accounts in double-entry bookkeeping, resembling a 'T' by dividing the page into two parts to track debits and credits.

Manufacturing Overhead

All indirect costs related to manufacturing, such as utilities, maintenance, and depreciation of equipment, not directly tied to the production of goods.

Job-Order Costing

A method of costing that collects costs for each individual job or batch of goods produced, as opposed to process costing.

Overapplied Overhead

A situation where the allocated manufacturing overhead costs are higher than the actual overhead expenses incurred.