Nate and Nikki Have Three Dependent Children Ages 12,15,and 17

question 80

Multiple Choice

Nate and Nikki have three dependent children ages 12,15,and 17.Their modified AGI is $120,000.What is the amount of the child credit to which they are entitled?

• A)$0
• B)$500
• C)$1,500
• D)$2,000

---

Definitions:

Total Assets Ratio

Total assets ratio is a financial metric used to assess a company's efficiency in using its assets to generate revenue.

Net Income

The net income a company earns once all expenses and taxes are subtracted from the total revenue.

Operating Cash Flow

Cash generated from a company's normal business operations, indicating whether a company can generate sufficient positive cash flow to maintain and grow its operations.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet account balances to calculate cash flow from operating activities.