Sylvia,age 17,is Claimed by Her Parents as a Dependent

question 94

Multiple Choice

Sylvia,age 17,is claimed by her parents as a dependent.During 2015,she had interest income from a bank savings account of $2,000 and income from a part-time job of $4,200.Sylvia's taxable income is:

• A)$4,200 - $4,550 = $0.
• B)$6,200 - $5,700 = $500.
• C)$6,200 - $4,550 = $1,650.
• D)$6,200 - $1,000 = $5,200.
• E)None of these.

---

Definitions:

Variable Expenses

Costs that vary in direct proportion with the level of production or sales volume, such as raw materials and sales commissions.

Traceable Fixed Expenses

Fixed costs that are directly associated with a specific department or product, and can be directly traced to it.

Minimum Required Rate Of Return

The lowest acceptable return on an investment, determined by an investor's or company's risk tolerance.

Average Operating Assets

Refers to the average value of the assets employed in a business's operations over a certain period of time, used to assess operational efficiency and return on investment.