During 2016,Lisa (Age 66)furnished More Than 50% of the Support

question 76

Multiple Choice

During 2016,Lisa (age 66) furnished more than 50% of the support of the following persons:
∙
Lisa's current husband who has no income and is not claimed by someone else as a dependent.
∙
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Lisa's stepson (age 19) who lives with her and earns $6,000 as a dance instructor.He dropped out of school a year ago.
∙
Lisa's ex-husband who does not live with her.The divorce occurred two years ago.
∙
Lisa's former brother-in-law who does not live with her.
Presuming all other dependency tests are met,on a separate return how many personal and dependency exemptions may Lisa claim?

• A)Two
• B)Three
• C)Four
• D)Five
• E)None of these

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Definitions:

Rule of 70

A formula used to estimate the number of years required for an investment or population to double, given a fixed annual growth rate.

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The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Interest Rate

The cost of borrowing money, expressed as a percentage of the total amount loaned, or the rate of return on investments.